A company projected a budget of $80,000 for direct materials and $120,000 for direct labor to produce 10,000 units. However, actual direct material costs amounted to $85,000, and actual direct labor costs were $125,000. Analyze the direct material and direct labor cost variances using a detailed breakdown of price and quantity variances, considering the impact of market fluctuations, supplier relationships, and workforce productivity on cost variances. Propose strategies to mitigate unfavorable variances and optimize cost management practices.