Cook Company processes and packages frozen seafood. The year just ended was Cook's first year of business and they are preparing financial statements. The immediate issue facing Cook is the treatment of the direct labor costs. Cook set a standard at the beginning of the year that allowed two hours of direct labor for each unit of output. The standard rate for direct labor is $28 per hour. During the year, Cook processed 60,200 units of seafood for the year, of which 4,816 units are in ending finished goods. (There are no work-in-process inventories). Cook used 124,000 hours of labor. Total direct labor costs paid by Cook for the year amounted to $3,207,500. Required: a. & b. What was the direct labor price variance and the direct labor efficiency variance for the year?

Direct labor price variance
Direct labor efficiency variance