Seabright Company has the following production standards: $21 60 Direct Materials (3 lbs per unit @ $7 per lb) Direct Labor (5 dl hrs per unit @ $12 per dl hr) Variable Overhead (4 machine hrs per unit @ $8 per machine hr) Fixed Overhead (4 machine hrs per unit @ $6 per machine hr*) Total Standard Cost per Finished 32 24 $137 Init Direct Labor (5 dl hrs per unit @ 60 $12 per dl hr) Variable Overhead (4 machine hrs per 32 unit @ $8 per machine hr) Fixed Overhead (4 machine hrs 24 per unit @ $6 per machine hr*) Total Standard Cost per Finished $137 Unit (*the fixed overhead rate was based on a budgeted production level of 7,000 units) During the current period, 7,500 units were produced. 30,000 pounds of direct materials were purchased on account for $6.80 per pound. 21,800 pounds of direct materials were used in production. 36,400 direct labor hours were used and the actual direct labor rate was $12.20 per direct labor hour. The total actual variable overhead costs (paid in cash) were $246,480 and the actual fixed overhead costs (paid in cash) were $175,000. Actual machine hours used were 31,200. 6,800 units were sold for $250 per unit cash. Required: In the attached Workpaper #3 1. Compute the 8 production cost variances (2 for direct materials, 2 for direct labor, 2 for variable overhead, 1. Compute the 8 production cost variances (2 for direct materials, 2 for direct labor, 2 for variable overhead, and 2 for fixed overhead). 2. Prepare all the required standard costing journal entries for the current period (including the closing of the variance accounts). 3. Compute the gross profit for the period