Backpack Inc. reported the following actual and budgeted results for 2021.

Actual Budgeted

Backpack production 200,000 180,000

Backpacks sold 150,000 160,000

Selling price $20 $18

Direct materials per backpack 1.5 yards @ $2.00

Direct labor per backpack 0.5 hr. @ $14

Direct materials used in yards 290,000

Direct material costs $507,500

Direct manufacturing hours used 140,000

Direct labor costs $1,820,000

Required:

1. Calculate the direct materials price and efficiency variances.
2. Calculate the direct labor price and efficiency variances.