MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for direct materials and direct labour:

Direct materials (100 kg @ $1.00 per kilogram)	$100.00
Direct labour (0.5 hours at $24 per hour)	12.00
Total standard direct cost per 100 kg bag	$112.00

The following activities were recorded for October:

	1,000 bags were manufactured.
	102,500 kg of materials costing $101,000 were purchased and used
	$12,000 was paid for 475 hours of direct labour.

Required:

A.	Compute the direct materials variances.
B.	Compute the direct labour variances.
C.	Give possible reasons for the occurrence of each of the preceding variances.