Rudd Clothiers is a small company that manufactures tall-mens suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.

Cost Element		Standard (per unit)		Actual
Direct materials		8 yards at $4.40 per yard		$375,575 for 90,500 yards ($4.15 per yard)
Direct labor		1.2 hours at $13.40 per hour		$200,925 for 14,250 hours ($14.10 per hour)
Overhead		1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60)		$49,000 fixed overhead $37,000 variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400. The total, price and quantity variances for materials and labor as follows:

(1)		Total materials variance		$20,425	Favorable
		Materials price variance		$22,625	Favorable
		Materials quantity variance		$2,200	Unfavorable
(2)		Total labor variance		$20,025	Unfavorable
		Labor price variance		$9,975	Unfavorable
		Labor quantity variance		$10,050	Unfavorable
(3)		Total overhead variance		$3,650	Unfavorable

Which of the materials and labor variances should be investigated if management considers a variance of more than 4% from standard to be significant?