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..... 2.0 pounds $4.00 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. 1. The materials price variance for March is (indicate amount and if variance is favorable or unfavorable) : 2. The materials quantity variance for March is (indicate amount and if variance is favorable or unfavorable) :