Standard Costing General Diamond, Inc. uses a standard system for cost control purposes The company secks your assistance in calculating certain variances for it's first month of operations. The company specializes in making industrial strength diamonds from coul. Each industrial strength diamond has the following standard cost information. Direct Materials (pounds of coal) Direct labor Std. Costs 100 lbs @ $2.00 lb = $200 175 hrs @ $7.00 h $5.25 During the past month, General Diamond, Inc, budgeted that 8000 diamonds would be produced; however, only 7600 were actually completed. There was no work in the process at the end of the month. In completing these diamonds, the company used 6400 actual hours for the month. Total direct labor costs amounted to $48.000 48,004,400 In addition, the company purchased 900,000 pounds of coal at $1.90 per pound. At the end of the month, there were 102,000 pounds remaining in raw materials inventory. 900,000 192,000 = 798,000 REQUIRED Compute the following variances: Note: Be sure to label your answer & indicate if the variance is favorable or unfavorable. MQV = (AQ-SQ) SP MPV = (AP-SP) AQ Purchased -0.15-219,000 LRV = (AR-SR) AH LEV = (AH-SH) SR