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Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by

Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.

Direct Labor: Direct Material:
Quantity, 0.15 hour Quantity, 8 kilograms
Rate, $7.50 per hour Price, $0.40 per kilogram

Actual material purchases amounted to 188,000 kilograms at $0.450 per kilogram. Actual costs incurred in the production of 20,000 units were as follows:

Direct labor: $25,120 for 3,200 hours
Direct material: $75,150 for 167,000 kilograms

Required:
1.

Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect

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