The managers of Ennis DVD Co., a contract manufacturer of DVD drives, are seeking explanations for the variances in the following report. Explain the meaning of each of Ennis's materials, labor, and overhead variances.

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ENNIS DVD CO. Standard Cost Income Statement Year Ended December 31, 2007 Sales revenue $1,200,000 Cost of goods sold at standard cost 700,000 Manufacturing cost variances: Direct materials price variance $10,000 F Direct materials efficiency variance 32,000 U Direct labor price variance 24,000 F Direct labor efficiency variance 10,000 U Overhead flexible budget variance 28,000 U Production volume variance 8,000 F Total manufacturing variances Cost of goods sold at actual cost Gross profit Marketing and administrative costs Operating income 28,000 728,000 472,000 418,000 54,000