Ford Motor Company analyzes production costs using standard cost variance. In May 2036, the company sets standard costs for producing 1,000 vehicles:

• Direct Materials: $10,000 per vehicle
• Direct Labor: $5,000 per vehicle
• Factory Overhead: $2,000 per vehicle

Actual costs incurred: $15,000,000 for 1,500 vehicles.

Required:

• Calculate the material, labor, and overhead variances.
• Analyze the reasons for the variances.