New Jersey Valve Company manufactured 8,000 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 40,800 hr. at $14.50 per hr. 24,000 lb. at $2.30 per lb. 23,100 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $2.20 per lb. $ 6.60 Direct labor 5 hr. at $15.00 per hr. Standard prime cost per unit 75.00 $81.60 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,000 units. 2. For the month of January, compute the following variances.