Manfred Incorporated produces a petrol-based product in the manufacturing process called POG. The standard costs are listed below:

Standard Quantity or Hours Standard Price or Rate

Direct Materials 4kg $2 per kg

Direct Labour 0.5 hour $16 per hour

Here are the actual costs for January 2020:

• 8,500 kilograms of the material was purchased at the cost of $2.25 per kilogram.
• All of the material purchased was used to produce 2,000 units of Zoom.
• A total of 850 hours of direct labour time was recorded at a total labour cost of $9,265.

Required:

a)Compute the direct materials price and quantity variances for the month.