Bold Company manufactures surfboards.Its standard cost information follows:

Standard Standard Price Standard Unit

Quantity (Rate) Cost

Fiberglass 15 sq. ft. $5 per sq. ft. $75.00

Direct labor 10 hrs $15 per hour 150.00

Variable manufacturing overhead $6 per direct labor hour. 60.00

Fixed manufacturing overhead $8 per direct labor hour 80.00

The company expected to require 2,500 hours of direct labor.

Bold has the following actual results for the month of June:

Number of units produced and sold 260

Number of square feet of fiberglass used 4,100

Cost of fiberglass purchased (5,000 square feet) $24,500

Number of labor hours worked 2,550

Direct labor cost $39,525

Variable overhead cost $14,790

Fixed overhead cost $20,500

Required:

a) Compute the eight variances

b) Explain what these variances may be indicating.