In December 2021, the Mahalo management team collaborated on the preparation of a quarterly master budget for the year 2022. The budgeted costs were used as the basis for updating the company's standard costing system. The budgeted and actual results for the first quarter was: Master Quarterly Budget First Quarter Results Sales revenue 500,000 $ 520,000 Direct materials cost 120,000 $ 118,900 Direct labor costs 30,000 $ 29,400 Machine depreciation $ 86,500 $ 86,500 Net income 189,500 $ 211,200 Other information Unit sales 1000 chairs 1000 chairs Machine hours 100 hours 97 hours Direct materials used (cubic meter of wood) 4,000 cubic meters 4,100 cubic meters Direct labor hours 2,000 hours 2, 100 hours There were no beginning or ending inventories of raw materials, WIP or finished goods. REQUIRED Compute the following variances for the first quarter: a. Material price and efficiency variances (6 marks) b. Labor price and efficiency variances (6 marks)