Troopers Company had budgeted 50,000 units of output using 50,000 units of raw materials at a totla material cost of P100,000. Actual output was 50,000 units of product requiring 45,000 units of raw materials at a cost of P2.10 per unit.

1. What is the direct materials price variance? Indicate if favorable or unfavorable.
2. What is the direct materials usage variance? Indicate if favorable or unfavorable.