Matthews Manufacturing makes a product that is expected to use 2 pounds of direct material to produce. At the beginning of the year Matthews expected to produce 10,000 units. Actual production, however, was 9,800 units. The standard price of direct materials is $3/pound. Matthews purchased 20,500 pounds of direct material at $3.10/pound, and used 19,400 pounds. Compute the direct material price variance and efficiency variance.