LMN Company manufactures Oxide123, a product used in the plastics industry. The company prepares its budget on the basis of standard costs. The budgeted production in January was 1,300 units. The following data are for January:

Actual results:

Direct material purchased

5,200 kilograms at $1.19 per kilogram

Direct material used

4,700 kilograms

Direct labor

7,400 hours at $15.25 per hour

Units produced

1,200 units

Standards for one unit of Oxide123:

Direct material

4 kilograms at $1.10 per kilogram

Direct labor

6 hours at $15 per hour

Answer the following two questions:

1) Compute the direct material variances: price, quantity, and material inventory variances

2) Compute the direct labor variances: rate and efficiency variances