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 @ $185)	185
Direct labor (8 hours @ $15)	120

Required:

A. Compute the direct material price and usage variances. Electronic kits purchased and used were 7,100 kits at an actual price of $175 per kit.

B. Compute the direct labor rate and efficiency variances. 58,000 labor hours were used and the actual labor rate was $16 per hour.