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. Direct material purchased Direct material used The control valve has the following standard prime costs. 40,100 hr. at $14.60 25,000 lb. at $2.60 23,100 lb. Required: Direct material: 3 lb. at $2.50 per lb. Direct labor: 5 hr. at $15.00 per hr. Standard prime cost per unit $ 7.50 75.00 $82.50 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, indicating whether each is favorable or unfavorable. a. Direct-material price variance. b. Direct-material quantity variance. c. Direct-labor rate variance. d. Direct-labor efficiency variance. CRA adapted)