31.50 Basic Variance Analysis, Revision of Standards, Journal Entries Petrillo Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve) is as follows: Direct materials (7 lbs. $5.40) $37.80 Direct labor (1.75 hrs. $18) Variable overhead (1.75 hrs. $4,00) 7.00 Fixed overhead (1.75 hrs. @ $3.00) 5.25 Standard cost per unit $81.55 During the year, Petrillo had the following activity related to valve production: a. Production of valves totaled 20,600 units.