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Manlius Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one

Manlius Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one unit of product are as follows:

Direct material: 6 ounces at $0.50 per ounce

$3.00

Direct labor: 0.6 hours at $30.00 per hour

$18.00

Variable manufacturing overhead: 0.6 hours at $10.00 per hour

$6.00

Total standard variable cost per unit

$27.00

During January, 2,000 units were produced. The costs associated with Januarys operations were as follows:

Material purchased: 18,000 ounces at $0.60 per ounce

$10,800

Material used in production: 14,000 ounces

Direct labor: 1,100 hours at $30.50 per hour

$33,550

Variable manufacturing overhead costs incurred

$12,980

Determine the direct materials variance, direct labor variance, and variable manufacturing overhead variance.

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