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 40,100 hour at $14.60 per hour 34,000 pounds at $2.30 per pound 29,100 pounds The control valve has the following standard prime costs: Direct material 4 pounds at $2.20 per pound $ 8.80 Direct labor 5 hour at $15.00 per hour 75.00 Standard prime cost per unit $ 83.80 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.