The Litton Company has established standards as follows: Direct material: 3 pounds per unit @ $4 per pound=\$12 per unit Direct labor: 2 hours per unit @ $per r lour=\$16 per unit Variable manufacturing overhead: 2 hours per unit @ $5 ser hour=\$10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. Units produced Direct material used Dircot material purchased (3,000 pounds) Direct labor cost (1, 100hours) ) .... ... Variable manufacturing overhead cost incurred..... 600 units 2,000 pounds S11,400 $9,240 $5,720 The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.