The following information is presented for the Scout Manufacturing Company:

• Direct material price standard is \($1.55\) per gallon.

• Direct material quantity standard is 2.5 gallons per finished unit.

• Budgeted production is 1,000 finished units.

• 4,000 gallons of direct material were purchased for $6,000.

• 2,800 gallons of direct material were used in production.
• 1,100 finished units of product were produced.

Required:

a. Determine the direct material price variance.

b. Determine the direct material quantity variance in dollars.