Financial and Managerial Accounting: P24-1A Tuna Company set the following standard unit costs

Financial and Managerial Accounting 
P24-1A Computation of materials, labor, and overhead variances 
Tuna Company set the following standard unit costs for its single product. 
Direct materials (25 lbs. @ $4 per Ib.) 100.00 
Direct labor (6 hrs. @ $6 per hr.) 48.00 
Factory overhead—variable (6 hrs. @ $5 per hr.) 30.00 
Factory overhead—fixed (6 hrs. @ $7 per hr.) 42.00 
Total standard cost 220.00 

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 252,000 288,000 324,000 

Budgeted overhead 
Fixed factory overhead 2,016,000 2,016,000 2,016,000 
Variable factory overhead 1,260,000 1,440,000 1,620,000 

During the current quarter, the company operated at 70% of capacity and produced 42,000 units of product; actual direct labor totaled 250,000 hours. Units produced were assigned the following standard costs: 
Direct materials (1,050,000 lbs. @ $4 per Ib.) 4,200,000 
Direct labor (252,000 hrs. @ $8 per hr.) 2,016,000 
Factory overhead (252,000 hrs. @ $12 per hr.) 3,024,000 
Total standard cost 9,240,000 

Actual costs incurred during the current quarter follow: 
Direct materials (1,000,000 lbs. @ $4.25) 4,250,000 
Direct labor (250,000 hrs. @ $7.75) 1,937,500 
Fixed factory Overhead costs 1,960,000 
Variable factory overhead costs 1,200,000 
Total actual costs 9,347,500 

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