Morry Games developed a new play station called AWESOME. Morry Games has a standard cost system to help control its costs. The following standards have been established for AWESOME.

• Direct materials 15 grams per AWESOME.
• Standard direct material cost per AWESOME is $10.
• Direct labour 1.2 hours per AWESOME.
• Standard cost of direct labour is $14.40 per AWESOME.
• During May the company produced 9,000 AWESOME units.

Production data for May are:

• Direct materials: 165,000 grams were purchased at a cost of $104,000; 20,000 grams of this was still in inventory at the end of the month.
• Direct labour: 11,400 direct labour hours were worked at a cost of $142,500.

Required:

1. Calculate Direct materials price and quantity variances.
2. Calculate Direct labour price and quantity variances.
3. Are the variances computed in (a) and (b) linked? Provide a brief commentary on the variances computed above, including explanations regarding the price and the quantity variances for Direct materials, and the price and the quantity variances for Direct labours.