Problem 10-33 Direct-Material and Direct- Labor Variances (LO 10-1, 10-3) 2. Direct-material quantity variance: $750 F New Jersey Valve Company manufactured 7,800 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 40,100 hr. at $14.60 per hr 25,000 lb. at $2.60 per b 23,100 lb.