(Material and labor variances) Jim Mora Marine uses a standard cost system for materials and labor in producing fishing boats. Production requires three materials: fiberglass, paint, and a prepurchased trim package. The standard costs and quantities for materials and labor are as follows:

Calculate the material and labor variances for Jim Mora Marine for July. Base the material price variance on the quantity of material purchased.LO.1

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Standards for One Fishing Boat 2,500 pounds of fiberglass @ $0.80 per pound 6 quarts gel coat paint @ $60.00 per gallon 1 trim package 40 hours of labor @ $25.00 per hour Standard cost for DM and DL $2,000 90 400 1,000 $3,490 The following actual data related to the production of 300 boats was recorded for July: Material Purchased Fiberglass 820,000 pounds @ $0.83 per pound Paint-500 gallons @ $55.50 per gallon Trim packages-320 @ $405 per package Material Used Fiberglass-790,000 pounds Paint 462 gallons Trim packages-304 Direct Labor Used 12,100 hours @ $23.50 per hour