E11.7 (LO 2. 3), AP Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.50 per pound) Direct labor (3 hours at $12.00 per hour) During the month of April, the company manufactures 230 units and incurs the following actual costs. $20 $36 Direct materials purchased and used (1,900 pounds) Direct labor (700 hours) $5,035 $8,120 Instructions Compute the total, price, and quantity variances for materials and labor. Compute the materials and labor variances and list reasons for unfavorable variances.