Variance Analysis The Holyrood Labs produces a variety of chemical compounds. One compound is prepared using an elaborate process. The company has developed standard costs for one unit, as follows: Standard Quantity or Standard Price or Standard Hours Rate Cost Direct materials 2.20 ounces $ 16.00 per ounce $ 35.20 Direct labor 0.80 hours $ 12.00 per hour 9.60 Variable manufacturing 0.80 hours $ 2.50 per hour 2.00 overhead Total standard cost per unit $ 46.80 The following information is based on last month's records of production. 1. Materials purchased 11,000 ounces at a cost of $160,600. 2. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in the ending inventory. 3. The company employs 18 lab technicians to work on the production of the compound. Last month, they each worked an average of 160 hours at an average pay rate of $11.50/hour. 4. Variable manufacturing overhead is assigned to the product based on direct labor hours. Variable manufacturing overhead costs last month totaled $4,000. 5. Last month the company produced 3,500 units of the product