During the first quarter, ended March 31, 2022, 900 units were actually produced with the following costs.

Lumber	$77,200
Metal kits	155,000
Type I labor	31,500
Type II labor	35,400
Indirect materials	13,380
Manufacturing supplies	18,200
Maintenance and utilities	19,700
Supervision	15,450
Insurance	3,700
Depreciation	33,000
Total	$402,530

Requirement 4

Prepare a brief report about how well management contained costs for the quarter. In your report, state what you think could be causing the cost variances.