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Trico Company set the following standard unit costs for its single product.

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Direct materials (30 Ibs. @ $4.80 per Ib.)$144.00Direct labor (6 hrs. @ $14 per hr.) 84.00Factory overhead—variable (6 hrs. @ $7 per hr.) 42.00Factory overhead—fixed (6 hrs. @ $9 per hr.) 54.00Total standard cost$324.00

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The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 57,000 units per quarter. The following flexible budget information is available.

Operating Levels  70% 80% 90%Production in units 39,900 45,600 51,300Standard direct labor hours 239,400 273,600 307,800Budgeted overhead      Fixed factory overhead$2,462,400$2,462,400$2,462,400Variable factory overhead$1,675,800$1,915,200$2,154,600

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During the current quarter, the company operated at 90% of capacity and produced 51,300 units of product; actual direct labor totaled 304,800 hours. Units produced were assigned the following standard costs.

Direct materials (1,539,000 Ibs. @ $4.80 per Ib.)$7,387,200Direct labor (307,800 hrs. @ $14 per hr.) 4,309,200Factory overhead (307,800 hrs. @ $16 per hr.) 4,924,800Total standard cost$16,621,200

Actual costs incurred during the current quarter follow.

Direct materials (1,519,000 Ibs. @ $7.30 per lb.)$11,088,700Direct labor (304,800 hrs. @ $13.00 per hr.) 3,962,400Fixed factory overhead costs 2,337,000Variable factory overhead costs 2,187,800Total actual costs$19,575,900(a) Compute the variable overhead spending and efficiency variances. (Round “cost per unit” and “rate per hour” answers to 2 decimal places.)

AH = Actual Hours

SH = Standard Hours

AVR = Actual Variable Rate

SVR = Standard Variable Rate

(b) Compute the fixed overhead spending and volume variances. (Round “cost per unit” and “rate per hour” answers to 2 decimal places.)

AH = Actual Hours

SH = Standard Hours

AFR = Actual Fixed Rate

SFR = Standard Fixed Rate

(c) Compute the total overhead controllable variance.

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