Valport Valve Company manufactured 7,600 units during March of a control valve used by milk processors in its Shreveport plant. Records indicated the following:

Direct labor		46,500	hr. at $14.70
Direct material purchased		31,000	lb. at $2.10
Direct material used		28,000	lb.

The control valve has the following standard prime costs.

Direct material:	4	lb. at $2.00 per lb.	$	8.00
Direct labor:	6	hr. at $15.10 per hr.		90.60
Standard prime cost per unit			$	98.60

Required:

1.

Prepare a schedule of standard production costs for March, based on actual production of 7,600 units.

VALPORT VALVE COMPANY: SHREVEPORT PLANT
Schedule of Standard Production Costs:
Based on 7,600 Units
For the Month of March
Direct material
Direct labor
Total standard production costs

2.	For the month of March, compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

a.	Direct-material price variance
b.	Direct-material quantity variance
c.	Direct-material purchase price variance
d.	Direct-labor rate variance
e.	Direct-labor efficiency variance