Party Balloons Company produces mylar balloons. The company’s direct materials standards for its deluxe balloon include 3 ounces of mylar. Standard prices for the year were $0.030 per ounce. Direct labor standards for the deluxe balloon specify 0.01 hour of direct labor at a standard direct labor rate of $18 per hour.
During January, the company made 200,600 deluxe balloons. Actual production data follow.
Direct materials .......... 602,000 ounces @ $0.028 per ounce
Direct labor ........... 2,000 hours @ $18.50 per hour

Required
1. Compute the direct materials price and quantity variances.
2. Compute the direct labor rate and efficiency variances.