Determine the material, labor, and overhead variances and explain their implications for Alamac.

Standard Cost Actual Cost

Direct Materials $$4,000\mathrm{.}00$ $$3,000$

Direct Labor $$1,000\mathrm{.}00$ $$975$

Overhead $$2,000\mathrm{.}00$ $$2,000$

Total $$7,000\mathrm{.}00$ $$5,975$