Top Notch Music Inc. produces car stereos. During the year Top Notch Music produced 7,000 stereos. Materials and labor standard 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. Compute the direct labor rate and efficiency variances. 58,000 labor hours were used and the actual labor rate was $16 per hour