Tim Winker Manufactured Housing, Inc., produces prefabricated modular housing. The company manufactures four styles of homes and uses a standard cost accounting system. The company uses a single account for capturing material variances and another account for recording labor variances. During a review of the general ledger for the past operating period, Tim Winker, the president, noted that the material variances were favorable and the labor variances were unfavorable. In general, what do these variances indicate regarding production costs for the period? What further information would management find useful in analyzing production costs and variances for the period?