Valport Valve Company manufactured 7,800 units during March of a control valve used by milk processors in its Shreveport plant. Records indicated the following:

Direct labor		40,200	hr. at $14.60
Direct material purchased		30,000	lb. at $3.00
Direct material used		22,100	lb.

The control valve has the following standard prime costs.

Direct material:	3	lb. at $2.90 per lb.	$	8.70
Direct labor:	5	hr. at $15.10 per hr.		75.50
Standard prime cost per unit			$	84.20

Required:

1.	Prepare a schedule of standard production costs for March, based on actual production of 7,800 units.

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).)