P10-4A. Variances, Total Overhead Variances, and Variance Reconciliation Mil.on Company planned to LO3, 4, 5 produce 21,000 units of its only produe during the year. Milton established the following standard cost data fior this product prior to the beginning of the year: Per Unit Direct material (3las. $5.00 per lb) Direct labor (2 hrs. $1 7.50 per hr.) Variable overhead (2 hrs.&S8 per hr.) Tatal standard cost per unit S15.00 35.00 12.00 2.00 Tatal budgeted fixed averhead is S4CO.00. Assume that Milon 1) actually produced 22,000 units, (2) used 68,000 pounds of direci ma:erials in production, (3) and incurred the following actual total costs: Total Cost Direct materials purchased (70,000 Ibs. Direct labor (43,000 hrs. $18.00 Variable averhead Fxed overhead 4800 $ 338,000 774,000 282.320 400,000 S1,772,320 Total actual cost Required a Calculate the variances for materials, labor, and variable overhead b. Does the difference between total actual costs and total standard costs equal the sum of all of the variances? Explain