New Jersey Valve Company manufactured 8,600 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 43,800 hr. at $15.30 per hr 31,000 lb. at $3.90 per lb. 25, 600 lb. The control valve has the following standard prime costs: Direct material3 lb. at $3.80 per b. Direct labor $11.40 78.50 $89.90 5 hr. at $15.70 per hr. Standard prime cost per unit Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,600 units. 2. For the month of January, compute the following variances