9-1A Direct Materials Variances Steve's Sausages begins business in March. In planning his business, Steve sets the following materials standard: Each sausage should take 250 grams of pork, and pork should cost $10 per kilogram, therefore each sausage should contain $2.50 of direct material. In March, Steve purchases 80 kilograms of pork for $750. Steve makes and sells 300 sausages and has 2 kilograms of pork remaining on hand at the end of the month. Required: Compute the company's direct materials price and quantity variances