Problem 10-33 Direct-Material and Direct-Labor Variances (LO 10-1, 10-3) New Jersey Valve Company manufactured 7,900 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 48,200 hr. at $14.10 per hr. 26,000 lb. at $2.60 per lb. 23,400 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $2.50 per lb. Direct labor 6 hr. at $14.60 per hr. Standard prime cost per unit $ 7.50 87.60 $95.10 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 7,900 units. 2. For the month of January, compute the following variances