Company G sets standard costs for its production process as follows:

• Standard direct materials cost per unit: $20
• Standard direct labor cost per unit: $15
• Standard variable overhead cost per unit: $10 Actual costs incurred during the month of February were:
• Direct materials: $25,000
• Direct labor: $18,000
• Variable overhead: $12,000 Calculate the direct materials, direct labor, and variable overhead variances and interpret their implications for management.