Perform a budget variance analysis for XYZ Corporation's manufacturing department. The table below summarizes budgeted and actual costs for the month of June:

Category	Budgeted Costs ($)	Actual Costs ($)	Variance ($)
Direct Materials	$50,000	$55,000
Direct Labor	$40,000	$38,000
Overhead	$30,000	$35,000
Total	$120,000	$128,000

Analyze the variances and identify potential causes and areas for improvement.