New Jersey Valve Company manufactured 8,000 units during January of a control valve used by milk processors in its Camden plant. Records indicated the following:

Direct labor	48,900	hr. at $15.20 per hr.
Direct material purchased	25,000	lb. at $3.30 per lb.
Direct material used	23,400	lb.

The control valve has the following standard prime costs:

Direct material	3	lb. at $3.20 per lb.	$	9.60
Direct labor	6	hr. at $15.50 per hr.		93.00
Standard prime cost per unit			$	102.60

Prepare a schedule of standard production costs for January, based on actual production of 8,000 units.

	NEW JERSEY VALVE COMPANY: CAMDEN PLANT Schedule of Standard Production Costs Based on 8,000 Units For the Month of January Standard Costs Direct material Direct labor Total standard production costs $0

For the month of January, compute the following variances.

For the month of January, 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_______