2. Oregon Corporation accumulates the following information relative to jobs started and completed during the month of August 2020. Costs and Production Information Actual Standard Raw material unit cost $2.25 $2.10 Raw material units used 10,600 10,000 Direct labor payroll $120,960 $120,000 Direct labor hours worked 14,400 15,000 Manufacturing overhead incurred $189,500 Manufacturing overhead applied $193,500 Machine hours expected to be used at normal capacity 42,500 Budgeted fixed overhead for August $55,250 Variable overhead rate per machine hour $3.00 Fixed overhead rate per machine hour $1.30 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials used was the same as the amount purchased. Instructions a. Compute all of the variances for (1) direct materials and (2) direct labor. b. Compute the total overhead variances