Bering Sea Block produces line haulers, commonly known as blocks, for use on fishing vessels to reel in heavy crab traps and fishing nets. Because of the harsh conditions in which the blocks must perform, each block is made through a combination of heavy machining and careful assembly by factory workers. Because of fluctuating costs of direct materials, direct labor, and factory overhead required to manufacture the blocks, Bering Sea Block began using a standard cost system three years ago. Until this point, management has not measured variances to those standards. 

The IT department has provided you with records from Bering Sea Block’s enterprise resource planning (ERP) system. While Bering Sea Block produces a number of different line haulers, you have been provided with one year’s production data for its most popular model. Factory overhead is determined using a combination of direct labor hours and direct materials. The standard rates at which they are applied are as follows:

Standard wage per hour ................................................................ $22.00
Standard labor time per unit ........................................................ 12 hrs.
Standard cost of stainless steel per pound ................................ $1.35
Standard pounds of stainless steel per unit .............................. 350 lbs.

Using the dataset provided and the standard rate information, complete the following:
1. Provide management with a visualization of the total direct materials and total direct labor variances.
2. Describe the insights that can be drawn from these variances.
3. Provide management with a visualization of the direct materials price and direct materials quantity variances.
4. Interpret the direct materials price variance and direct materials quantity variance.
5. Provide management with a visualization of the direct labor rate and direct labor time variances.
6. Interpret the direct labor rate variance and direct labor time variance.