P&G Company produces large size bags for the use of tourists. Company uses standard costing system to control costs. The standards for materials and labour costs to manufacture 1 bag are as follows:

Direct materials 7.2kgs @$5 per kg =$36

Direct labour 0.4 hours @$20 per hour=$8

During the last month, P&G produced 2500 large bags. 20 000kgs of direct materials were purchased @$4.80 per kg. There was no direct materials inventory at the beginning and end of the month. 900 labour hours were recorded @$24 per hour.

Compute direct materials variances.

Compute direct labour variances.