Problem 10-42 Direct-Material and Direct-Labor Variances (LO 1, 3)

New Jersey Valve Company manufactured 8,300 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

Direct labor		34,100	hr. at $14.80 per hr.
Direct material purchased		29,000	lb. at $3.20 per lb.
Direct material used		24,600	lb.

The control valve has the following standard prime costs:

Direct material:	3	lb. at $3.10 per lb.	$	9.30
Direct labor:	4	hr. at $15.20 per hr.		60.80
Standard prime cost per unit			$	70.10

Required:

1.	Prepare a schedule of standard production costs for January, based on actual production of 8,300 units.(Omit the "$" sign in your response.)

NEW JERSEY VALVE COMPANY CAMDEN PLANT SCHEDULE OF STANDARD PRODUCTION COSTS BASED ON 8,300 UNITS FOR THE MONTH OF JANUARY
Direct material	$
Direct labor
Total standard production costs	$

2.	For the month of January, compute the following variances, indicating whether each is favorable or unfavorable. (Select "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)

Direct-material price variance	$	(Click to select) Unfavorable None Favorable
Direct-material quantity variance	$	(Click to select) Unfavorable None Favorable
Direct-labor rate variance	$	(Click to select) Unfavorable Favorable None
Direct-labor efficiency variance	$	(Click to select) None Unfavorable Favorable