Direct materials: 2.5 yards @ $ 8.00 per yard $ 20.00 Direct labor: 0.5 hours @ $ 18.00 per hour 9.00 Variable overhead (based on labor hours): 0.5 hours @ $ 10.00 per hour 5.00 Budgeted production for the month 14,000 units Actual production for the month 13,500 units Actual Costs Incurred to Produce 13,500 units: Standard Quantity Standard Price/Rate Total Actual Cost Direct Materials Purchased and Used 35,100 yards @ $ 7.00 per yard $2,45,700 Direct Labor Paid 7,425 hours @ $ 17.50 per hour $1,29,938 Variable Overhead Incurred 7,425 hours @ $ 12.00 per hour $ 89,100 1. Compute the direct material, direct labor and variable overhead variances. Navigation: Use the Open Excel in New Tab button to launch this question. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.