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 41,000 hr. at $14.00 per hr. Direct material purchased 27,000 lb. at $2.80 per lb. Direct material used 23,800 lb. The control valve has the following standard prime costs: Direct material 3 lb. at $2.70 per lb. $ 8.10 Direct labor 5 hr. at $14.40 per hr. 72.00 Standard prime cost per unit $ 80.10 Required: 1. Prepare a schedule of standard production costs for January, based on actual production of 8,000 units. 2. For the month of January, compute the following variances.