Gold Corporation produces a single product and the standard labor cost of that product is 5 hours at a labor rate of $25 per hour. During the month of January, 50,000 hours of labor are incurred at a cost of $23 per hour to produce 9,850 units. Compute the labor price and quantity variance, as well as the total labor variance.

In producing that product, the standard material cost for 1 unit is 10 pounds of direct materials at $3.50 per pound. During January, 95,000 pounds of direct materials were used at a cost of $3.25 per pound to make the 9,850 units. Compute the materials price and quantity variance, as well as the total materials variance.

Gold Corporation allocates overhead using a predetermined rate. The predetermined rate is calculated using direct labor hours as the cost driver. Budgeted overhead for the month of January was $150,000 and budgeted direct labor hours were 45,000. Total overhead incurred during the month of January was $165,000. Compute the overhead variance for Gold Corporation for January.

Now, compute the total variance for Gold Corporation for the month of January. Explain some reasons behind why those variances may have occurred.