New Jersey Valve Company manufactured 7,800 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

Direct labor	40,100	hr. at $14.60 per hr.
Direct material purchased	25,000	lb. at $2.60 per lb.
Direct material used	23,100	lb.

The control valve has the following standard prime costs:

Direct material	3	lb. at $2.50 per lb.	$	7.50
Direct labor	5	hr. at $15.00 per hr.		75.00
Standard prime cost per unit			$	82.50

Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 7,800 units. 2. For the month of January, compute the following variances.