Financial and Managerial Accounting: P23-1A Trico Company set the following standard unit costs

Financial and Managerial Accounting 
P23-1A Computation of materials, labor, and overhead variances 
Trico Company set the following standard unit costs for its single product. 
Direct materials (30 lbs. @ $4 per Ib.) 120.00 
Direct labor (5 hrs. @ $14 per hr.) 70.00 
Factory overhead—variable (5 hrs. @ $8 per hr.) 40.00 
Factory overhead—fixed (5 hrs. @ $10 per hr.) 50.00 
Total standard cost 280.00 

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. 
Operating Levels 
70% 80% 90%
Production in units 42,000 48,000 54,000 
Standard direct labor hours 210,000 240,000 270,000 

Budgeted overhead 
Fixed factory overhead 2,400,000 2,400,000 2,400,000 
Variable factory overhead 1,680,000 1,920,000 2,160,000 

During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs: 
Direct materials (1,620,000 lbs. @ $4 per Ib.) 6,480,000 
Direct labor (270,000 hrs. @ $14 per hr.) 3,780,000 
Factory overhead (270,000 hrs. @ $18 per hr.) 4,860,000 
Total standard cost 15,120,000 

Actual costs incurred during the current quarter follow: 
Direct materials (1,615,000 lbs. @ $4.10) 6,621,500 
Direct labor (265,000 hrs. @ $13.75) 3,643,750 
Fixed factory Overhead costs 2,350,000 
Variable factory overhead costs 2,200,000 
Total actual costs 14,815,250 

Required 
1. Compute the direct materials cost variance, including its price and quantity variances. 
2. Compute the direct labor variance, including its rate and efficiency variances. 
3. Compute the controllable variance and fixed overhead volume variance.
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