ABC Inc. budgeted $120,000 for direct material costs and $140,000 for direct labor costs for the production of 20,000 units. However, actual direct material costs amounted to $125,000, and actual direct labor costs were $145,000. Assess the direct material and direct labor cost variances using a detailed breakdown of price and quantity variances. Identify factors influencing cost variances and propose strategies for cost control and performance improvement.