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XYZ Ltd manufactures a product with the following standard costs: Direct materials 2 kg per unit at $4 per kg, Direct labor 3 hours per

XYZ Ltd manufactures a product with the following standard costs: Direct materials 2 kg per unit at $4 per kg, Direct labor 3 hours per unit at $8 per hour. During the month, the company produced 5,000 units. Actual costs were: Direct materials $40,000 and Direct labor $120,000. Calculate the material and labor variances.

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