Balt Company maintains a standard cost system; as such, all inventories, including materials,

are carried on the books at standard cost. Last period, Balt used 5500 pounds

to produce600 units of Product C8. The company has established a standard of

8 pounds of Material H per unit of C8, at a price of$6.00per pound

of material. During the period, Balt purchased 3200 pounds of

Material H. The company spent$7per pound during the periodto purchase material H.

Required:Note whether variances are favorable or unfavorable

1. Calculate the direct materials purchase-price variance for the period, rounded to the nearest dollar.

2. Calculate the direct materials usage variance for the period, rounded to the nearest whole dollar.