The managers of Monachino, a contract manufacturer of DVD drives, are seeking explanations for the variances in the following report. Explain the meaning of each of Monachino€™s materials, labour, and overhead variances.

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Monachino Company Standard Cost Income Statement Year Ended December 31 Sales revenue Cost of goods sold at standard cost Manufacturing cost variances: 51,180,000 700,000 Direct materials price variance Direct materials efficiency variance Direct labour price variance Direct labour efficiency variance Manufacturing overhead flexible $32,000 U 8,000 F 10,000 U 24,000 F hudget variance Production volume variance Total manufacturing variances 9,000 F 30,000 U Cost of goods sold at actual cost Gross profit Marketing and administrative expenses Operating income 31,000 731,000 449,000 426,000 S 23,000