Problem 10-33 Direct-Material and Direct-Labor Variances (LO 10-1, 10-3) m. 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: 0.85 points Direct labor Direct material purchased Direct material used 48,900 hr. at $15.20 per hr. 25,000 lb. at $3.30 per lb. 23,400 lb. eBook References The control valve has the following standard prime costs: Direct material 3 lb. at $3.20 per lb. Direct labor 6 hr. at $15.50 per hr. Standard prime cost per unit $ 9.60 93.00 $102.60 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. Required 1 Required 2 Prepare a schedule of standard production costs for January, based on actual production of 8,000 units. NEW JERSEY VALVE COMPANY: CAMDEN PLANT Schedule of Standard Production Costs Based on 8,000 Units For the Month of January Standard Costs Direct material Direct labor Total standard production costs Required 1 Required 2 For the month of January, compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).) a. Direct-material price variance b. Direct-material quantity variance c. Direct-material purchase price variance d. Direct-labor rate variance e. Direct-labor efficiency variance