Use the following to answer questions $1-2$:

Luc, Inc., manufactures a single product. The company uses a standard cost system and has established the following direct material standards for one unit of product:

Standard Standard Price

Quantity

Direct materials

$2\mathrm{.}0$ pounds

$$4\mathrm{.}00$ per pound

During March, the following activity was recorded by the company:

The company produced $4,000$ units during the month, which was $500$ less than budgeted.

A total of $10,000$ pounds of material were purchased at a cost of $$38,000.$

There was no beginning inventory of materials on hand to start the month; at the end of the month, $3,000$ pounds of material remained in the warehouse.

The materials price variance for March is $($indicate amount and if variance is favorable or unfavorable$)$ :

The materials quantity variance for March is $($indicate amount and if variance is favorable or unfavorable$)$ :