8-46 Material, Labor, and Overhead Variances Poulsbo Kayak Company makes molded plastic kayaks. Standard costs for an entry-level whitewater kayak are as follows: Direct materials, 60 lb at $5.50/1lb Direct labor, 1.5 hr at $16/hr Overhead, at $12 per kayak Total $330 24 12 $366 The overhead rate assumes production of 450 kayaks per month. The overhead cost function is $2,808+ ($5.76 x number of kayaks). During March, Poulsbo produced 430 kayaks and had the following actual results: Direct materials purchased and used 27,000 pounds at $5.30/lb Direct labor Actual overhead 670 hours at $15.90/hr $5,335 1. Compute material, labor, and overhead variances.