2. XYZ Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor:

Direct materials (100 lbs. @ $2.00 per lb.)	$200.00
Direct labor (1.0 hours at $25 per hour)	25.00
Total standard prime cost per 100 lb. bag	$225.00

The following activities were recorded for October:

	1,500 bags were manufactured.
	148,500 lbs. of materials were used with an actual price of $1.90 per lb.
	$38,000 was paid for 1600 hours of direct labor.

There were no beginning or ending work-in-process inventories.

Required:

A.	Compute the direct materials variances.
B.	Compute the direct labor variances.