Compute all of the materials and labor variances.

Problem 23-1A (part level submission) Costello Corporation manufactures a single product. The standard cost per unit of product is shown below Direct materials-2 pound plastic at $7.42 per pound Direct labor-1.50 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $ 14.84 18.00 9.00 6.00 $47.84 The predetermined manufacturing overhead rate is $10 per direct labor hour ($15.00 1.50). It was computed from a master manufacturing overhead budget based on normal production of 7,800 direct labor hours (5,200 units) for the month. The master budget showed total variable costs of $46,800 ($6.00 per hour) and total fixed overhead costs of $31,200 ($4.00 per hour). Actual costs for October in producing 4,400 units were as follows Direct materials (8,920 pounds) Direct labor (6,430 hours) Variable overhead Fixed overhead $67,257 79,603 50,026 17,844 $214,730 Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories therefore, can be ignored