Steve's Sausages begins business in March.In planning his business, Steve sets the following materials standard:Each sausage should take 250 grams of pork, and pork should cost $10 per kilogram, therefore each sausage should contain $2.50 of direct material.

In March, Steve purchases 80 kilograms of pork for $750.Steve makes and sells 300 sausages and has 2 kilograms of pork remaining on hand at the end of the month.

Required:

Compute the company's direct materials price and quantity variances.