The following data was obtained for a company that makes statues:

Standard Inputs Expected Standard Price
For Each Unit of Output Per Unit of Input
Direct material 5 pounds $12 per pound
Direct labor 1.5 hours $12 per hour

During the month of July, the company actually produced 1,000 statutes, which is 100 units less than expected. Direct material purchased and used amounted to 5,500 pounds at a cost of $12.50 per pound. Actual direct labor was 1,450 hours at an actual cost of $13.00 per hour.

Required:
A) Compute the price and quantity variances for direct materials.
B) Compute the price and quantity variances for direct labor.

A) Price variance = ($12.50 - $12.00 ) × 5,500 = $2,750 Unfavorable
Quantity variance = (5,500 - 5,000 ) × $12 = $6,000 Unfavorable
B) Price variance = ($13.00 - $12.00 ) × 1,450 = $1,450 Unfavorable
Quantity variance = (1,450 - 1,500 ) × $12.00 = $600 Favorable