1. Hurley, Inc. manufactures widgets for distribution. The standard costs for the manufacture of widgets follow: Direct materials Standard Costs 3 lbs. per widget at $35 per pound Actual Costs 9,300 lbs. at $34 per pound Direct labor 2.5 hours per widget at $11 per hour 6,750 hours at $11.80 per hour Factory overhead Variable cost. $24/widget $72,450 variable cost Fixed cost. $40/widget $114,375 fixed cost Budgeted factory overhead was $192,000. Overhead applied is based on widgets produced. The company estimated that 3,000 widgets would be produced; however, only 2,880 were produced. Calculate the following variances. A. Materials Quantity Variance (MOV). B. Overhead Volume Variance (OHVV).