In December of Year 2 operations (month 24), Memories, Inc. actually produced and sold 32,675 figurines, consisting of 30,570 dolls and 2,105 replicas, The budgeted sales price for dolls was $5.00, and $5.25 for replicas. The estimated production and sales during December was 31,678 dolls and 2,595 replicas.

Compute the price and volume variances for sales, assuming that MI sold all figurines produced for $137,565 (dolls) and $9,051 (replicas). What might explain these variances?