A company produced 1,600 units last month. They used 3,500lbs of material at a cost of $21,875 and 2,300 direct labour hours were worked at a cost of $37,490. According to the standard cost card for th 32 item, it should require 2.2lbs per unit at a cost of $6.50 per Ib and 1.5 direct labour hours per unit at a cost of $16.00 per hour. Required: Calculate the direct materials price and quantity variances. Show your work and label your variances (name of variance and favourable or unfavourable). (7 marks)