Baird Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:
Amount of direct materials per candle 1.60 pounds
Price of direct materials per pound $ 0.50 Quantity of labor per unit 0.70 hours
Price of direct labor per hour $ 8.90 /hour
Total budgeted fixed overhead $ 217,000 During 2017, Baird planned to produce 35,000 drip candles. Production lagged behind expectations, and it actually produced only 27,000 drip candles. At year-end, direct materials purchased and used amounted to 45,100 pounds at a unit price of $0.44 per pound. Direct labor costs were actually $8.50 per hour and 21,400 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $172,800. Overhead is applied to products using a predetermined overhead rate based on estimated units.
Required

e. Compute the price and usage variances for direct materials and direct labor.