DE24-12 In a series of Daily Exercises, we will compute variances and record journal entries for TimTam Pottery, a manufacturer of ceramic cookie jars. The company has the following standards: Direct materials (clay). Direct labor Static budget variable overhead. Static budget fixed overhead Static budget direct labor hours. Static budget number of cookie jars... 1 pound per jar, at a cost of $0.50 per pound 1/5 hour per jar, at a cost of $13 per hour $60.000 $20,000 10,000 hours 50,000 TimTam allocates manufacturing overhead to production based on standard direct labor hours. Last month. Tim Tam reported the following actual results for the production of 60,000 jars: Direct materials.. Direct labor 1.1 pound per jar, at a cost of $0.60 per pound 1/4 hour per jar, at a cost of $12 per hour Actual variable overhead. $84,000 $18,000 Actual fixed overhead Compute TimTam's variances for materials.