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Amazon.com uses standard costing for its inventory valuation. The standard costs and actual costs for direct materials, direct labor, and variable overhead for producing 1,000

Amazon.com uses standard costing for its inventory valuation. The standard costs and actual costs for direct materials, direct labor, and variable overhead for producing 1,000 units of a product are as follows:

Cost Component

Standard Cost ($)

Actual Cost ($)

Direct Materials

$20

$22

Direct Labor

$10

$11

Variable Overhead

$5

$6

Calculate the direct materials, direct labor, and variable overhead variances.

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