Comprehensive Variance Problem: The Antikron Company produces rubber seals used in the aerospace industry. Standards call for three pounds of material at $2.50 per pound for each seal. The standard cost for labor is 1.5 hours at $15 per hour. Standard overhead is $10 per unit. For the year 2021, the expected production is 130,000 seals with the fixed overhead of $130,000 and a variable overhead of $9 per seal. During 2021, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,150,000. Production required 425,000 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $900,000.

Required

a) Determine the standard cost per seal. b) Calculate the material, labor, and overhead variances. c) A summary of the variances, and indicate which variances should be investigated.