The following standard costs per unit have been established by Fear, Inc.:

Material (3 kilograms at $2 per kilogram) $ 6.00

Direct labor (2 hours at $12 per hour) 24.00

During the month, Fear produced 1,100 units, which was 100 less units than planned.

They used 3,400 kilograms and 2,050 hours to do so.

Total actual materials spending was $6,460, while total actual labor spending was $27,675.

Required

Compute relevant variable cost variances for both direct materials and direct labor.

Be sure to label each variance by name and denote each variance as favorable or unfavorable.