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Malto Inc. maintains a standard cost system; as such, all inventories, including materials, are carried on the books at standard cost. Last period, Malto used

Malto Inc. maintains a standard cost system; as such, all inventories, including materials, are carried on the books at standard cost. Last period, Malto used 5500 pounds to produce 820 units of Product C8. The company has established a standard of 7.6 pounds of Material H per unit of C8, at a price of $7.00 per pound of material. During the period, Malto purchased 4600 pounds of Material H. The company spent $7.25 per pound during the period to purchase material H.
Required: Note whether variances are favorable or unfavorable
1. Calculate the direct materials purchase-price variance for the period, rounded to the nearest dollar.
2. Calculate the direct materials usage variance for the period, rounded to the nearest whole dollar.

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