Fabers, Inc. has established the following standards for production:

Materials: Kilograms per unit 4.3 kg Cost per kilogram $2.50 Direct Labor: Hours per unit 0.7 Cost per hour $16.50

For the month of August, 50,000 units were produced. Actual results were: Materials: Total cost $540,000 Kilograms used 180,000 Direct Labor: Total cost $640,000 Hours used 40,000

1. What is the materials quantity variance (MQV) for August?

2. What is the labor rate variance (LRV) for August?