Dolson Manufacturing produces ceramic teapots. Dolson allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots). Standards: per hour Direct material 70 pounds per batch at $4.00 per pound Direct labor 3.0 hours per batch at $19.00 Variable MOH standard rate $3.00 per direct labor hour Predetermined fixed MOH standard rate $6.00 per direct labor hour Total budgeted fixed MOH cost $1,560 Actual cost and operating data from the most recent month follows: Purchased 5,670 pounds at a cost of $3.90 per pound Used 5,000 pounds in producing 70 batches Actual direct labor cost of $4,554 at an average direct labor cost per hour of $19.80 Actual variable MOH cost $736 Actual fixed MOH cost $1,660 All manufacturing overhead is allocated on the basis of direct labor hours. Requirements: 1. Calculate the following variances: a) The direct material variances (Price and usage variances) b) The direct labor variances (Rate and efficiency variances) c) The variable manufacturing overhead variances (Expenditure and efficiency variances) 2. Have the company's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why or why not