E9-6 (Algo) Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow: Silver Crystals Direct labor Standard Quantity 0.50 ounce 7.00 2.00 hours Standard Price (Rate) $25.00 per ounce $ 0.50 crystal $ 14.00 per hours Standard Unit Cost $ 12.50 3.50 28.00 During the month of January, Crystal Charm made 1,550 charms. The company used 745 ounces of silver (total cost of $19,370) and 10,900 crystals (total cost of $5,232.00), and paid for 3,250 actual direct labor hours (cost of $43,875.00). Required: 1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January. 2. Calculate Crystal Charm's direct labor variances for the month of January.