The Antikron Company produces rubber seals used in the aerospace industry. Standards call for 3 pounds of material at $2.50 per pound for each seal. The standard cost for labor is 1.5 hours at $15 per hour. Standard overhead is $10 per unit. For the year 2018, expected production is 130,000 seals with fixed overhead of $130,000 and variable overhead of $9 per seal. During 2018, a total of 125,000 seals were produced. The company purchased 455,000 pounds of material for $1,150,000. Production required 425,000 pounds of material. The cost of direct labor incurred was $2,900,000 with an actual average wage rate of $15.25 per hour. Actual overhead for the year was $900,000.

Required

a. Determine the standard cost per seal.

b. Calculate the material, labor, and overhead variances.

c. Prepare a summary of the variances, and indicate which variances should be investigated.