Response to the following problem:
Given the following information:
Variable overhead costs incurred $20,570
Material purchased and used 2,900 pounds
Direct labor costs incurred $24,500
Direct labor hours incurred 2,450 hours
Finished units produced 500 units
Actual material cost $37 per pound
Standard direct labor cost $9 per hour
Standard material cost $40 per pound
Standard variable overhead $8 per hour
Standard pounds of material in a finished unit 6 pounds
Standard direct labor hours per finished unit 5 hours
A) Compute the price and quantity variances for direct materials.
B) Compute the price and quantity variances for direct labor.