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 40,000 hr. at $14.10 per hr.

Direct material purchased 29,000 lb. at $2.10 per lb.

Direct material used 27,300 lb.

The control valve has the following standard prime costs:

Direct material 4 lb. at $2.00 per lb. $ 8.00

Direct labor 5 hr. at $14.50 per hr. 72.50

Standard prime cost per unit $ 80.50

Required:

Prepare a schedule of standard production costs for January, based on actual production of 7,800 units.

For the month of January, compute the following variances.