The managers of Kerwin Co., a contract manufacturer of computer monitors, are seeking explanations for the variances in the following report. Explain the meaning of each of the company's materials, labor and overhead variances.

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Kerwin Co Standard Cost Income Statement Year Ended December 31 Sales revenue at standard cost Flexible budget sales revenue variance Sales revenue at Cost of goods sold at standard cost Manufacturing cost variances: 1,205,000 5,000 $1,210,000 710,000 Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance Total manufacturing variances $32,000 U 8,000 F 9,000 U 25,000 F 21,000 U 3,000 F 6,000 U 9,000 F Cost of goods sold at actual cost Gross profit Marketing and administrative expense. Operating income 23,000 $ 733,000 $ 477,000 418,000 $ 59,000