Top Notch Music Inc. produces car stereos. During the year Top Notch Music produced 7,000 stereos. Materials and labor standards for producing these units are as follows:

Direct materials (1 electronic component kit @ $200)	200
Direct labor (10 hours @ $15)	150

Required:

A. Compute the direct material price and usage variances. Electronic kits purchased and used were 6,800 kits at an actual price of $180 per kit.

B. Compute the direct labor rate and efficiency variances. 68,000 labor hours were used and the actual labor rate was $13 per hour.