Party Balloons Company produces mylar blaaoons. The company's direct materials standards for the deluxe balloon includes 3 ounces of mylar. Standard prices for the year were $0.030 per ounce. Direct labor standards for the deluxe balloon specify $0.01 hour of direct labor at a standard direct labor rate of $18 per hour.

During January, the company made 200,600 deluxe balloons. Actual production data is...

Direct Materials 602,000 ounces @$0.028 per ounce

Direct Labor 2,000 hours @$18.50 per hour

1. Compute the direct materials price and quantity variances.

2. Compute the direct labor rate and efficiency variances.