Medical Instruments produces a variety of electronic medical devices. Medical Instruments uses a standard cost system and computes price variances at the time of purchase. One product, a digital thermometer, measures patient temperatures orally. It requires a silver lead with a standard length of 12 centimeters per thermometer. To make the leads, hollow silver tubing is purchased at £4 per centimeter, cut into the required length, and then assembled into the thermometer.

No silver tubing was in inventory when a batch of 200 thermometers was scheduled for production. Thirty meters (3,000 centimeters) of silver tubing were purchased for £4,680 by the purchasing department for this 200-unit batch of thermometers, and 27.50 meters were used in production.

Compute the materials price and quantity variances for silver tubing and comment on the meaning of each variance.