New Jersey Valve Company manufactured 7,900 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

Direct labor 48,200hr. at $14.10 per hr.

Direct material purchased 26,000lb. at $2.60 per lb.

Direct material used 23,400lb.

The control valve has the following standard prime costs:

Direct material3lb. at $2.50 per lb. $7.50

Direct labor 6hr. at $14.60 per hr. 87.60

Standard prime cost per unit $95.10

Required:

1.Prepare a type of schedule of standard production costs for January, based on actual production of 7,900 units.

2.For the month of January, compute the following variances. (Direct-material price variance, direct-material quantity variance, direct-material purchase price variance, direct-labor rate variance, direct-efficiency labor variance)