=+SA 23-3 Variance interpretation 1084 Chapter 23 Performance Evaluation Using Variances from Standard Costs MyLife Electronics Co.—Fabrication Department Quarterly Budget Performance Report Standard Actual Quantity at Quantity at Quantity Standard Rates Standard Rates Variances Direct labor $122,500 $101,500 $21,000 F Direct materials 70,000 70,000 0 _________ _________ ________ Total $192,500 $171,500 _________ _________ ________ $21,000 F _________ _________ ________ You also interviewed the Assembly Department supervisor. Excerpts from the interview follow.