Riley Company produces and sells a single product with budgeted or standard unit costs as follows: Inputs Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Standard Quantity 2 gallons 3 hours 3 hours 3 hours Standard Cost $22 42 120 180 $364 During April 1,100 units were manufactured and 1,000 units were sold at a sales price of $610. Actual results for April were as follows: Direct materials purchased 2,400 gallons at $10 per gallon Direct materials used 2,340 gallons Direct labor used 3,480 hours at $15.20 per hour Variable overhead costs incurred $135,600 Fixed overhead costs incurred $183,500 Instructions: Compute the following variances and indicate whether the variances are favourable or unfavourable; and if unfavourable explain why.