Cajun Corporation manufactures a labor-intensive product.The cost standards developed by Cajun appear below. Manufacturing overhead at Cajun is applied to production on the basis of standard direct labor-hours:

	Standard Quantity per unit	Standard cost per ounce or hour	Standard cost per unit
Direct materials	0.75 ounces	$20.00	$15.00
Direct labor	1.2 hours	$12.00	14.40
Variable overhead	1.2 hours	$3.00	3.60
Fixed overhead	1.2 hours	$5.00	6.00
Total standard cost per unit			$39.00

The standard above were based on an epected annual volume of 8,000 units. The actual results for last year were as follows:

Number of unit produced ............................................. 8,200

Direct labor-hours incurred..........................................10,000

Ounces of direct materials purchased...........................7,900

Ounces of direct materials used in production..............6,070

Total cost of direct materials purchased..................$156,815

Total direct labor cost...............................................$122,800

Total variable overhead cost....................................$28,600

Total fixed manufacturing overhead cost.................$47,500

Required:

Compute the following variances for Cajun.

a) Materials price variance

b) Materials quantity variance