Sheridan Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Sheridan Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.90 per tube) $3.80 Direct labor (1 hour @ $31 per hour) 31.00 Variable overhead (1 hour @ $6.00 per hour) 6.00 Fixed overhead (1 hour @ $12.00 per hour) 12.00 Total standard cost per test $52.80 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2022, when 900 tests were conducted, resulted in the following. Direct materials (1,890 test tubes) $3,402 Direct labor (945 hours) 27,405 Variable overhead Fixed overhead 4,860 10,512 Monthly budgeted fixed overhead is $16,080. Revenues for the month were $59,400, and selling and administrative expenses were $4,100. (a) Your answer is correct. Compute the price and quantity variances for direct materials and direct labor. Materials price variance $ 189 i Favorable Materials quantity $ 171 i Unfavorable variance Labor price variance 1890 i Favorable Labor quantity variance $ 1395 i Unfavorable