New Jersey Valve Company manufactured 7,000 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

Direct labor	36,100	hr. at $14.70 per hr.
Direct material purchased	28,000	lb. at $2.20 per lb.
Direct material used	26,000	lb.

The control valve has the following standard prime costs:

Direct material	4	lb. at $2.10 per lb.	$	8.40
Direct labor	5	hr. at $15.10 per hr.		75.50
Standard prime cost per unit			$	83.90

Required:

1. Prepare a schedule of standard production costs for January, based on actual production of 7,000 units.
2. For the month of January, compute the following variances.

Prepare a schedule of standard production costs for January, based on actual production of 7,000 units.

NEW JERSEY VALVE COMPANY: CAMDEN PLANT
Schedule of Standard Production Costs
Based on 7,000 Units
For the Month of January
	Standard Costs
Direct material
Direct labor
Total standard production costs

For the month of January, compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

a.	Direct-material price variance
b.	Direct-material quantity variance
c.	Direct-material purchase price variance
d.	Direct-labor rate variance
e.	Direct-labor efficiency variance