Standard Costing Example Standard Costs and Variances Problem Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: The budget for June indicated 1,800 units would be produced. During June, 2,000 units were produced. The cost associated with June's operations were as follows: Compute the direct materials, direct labor, and variable manufacturing overhead variances