Case 12.67 a-b The Kohler Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2020 budget for the two products (in thousands) was as follows: Level of production in litres Direct materials Direct labour Total direct manufacturing cost LX-4 1,800 $4,500 2,700 $7,200 ABC-8 1,800 $5,625 2,700 $8,325 Total 3,600 $10,125 5,400 $15.525 The following planning assumptions were used for the budget: (1) a direct materials yield of 96%, and (2) a direct labour rate of $6 per hour. The actual results for 2020 were as follows (in thousands): Total litres produced Direct materials Direct labour Total direct manufacturing cost LX-4 1,710 $4,104.00 2,808.00 $6,912.00 ABC-8 1,974 $6,415.50 3,276.00 $9,691.50 Total 3,684 $10,519.50 6,084.00 $16,603.50 The actual production yield was 95% for LX-4 and 94% for ABC-8. The direct labour cost per hour for both products was $6.50. Calculate for product LX-4: (1) the direct materials price variance, and (2) the direct materials efficiency (yield) variance. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to o decimal places, e.g. 5,275. Enter answers in thousands.) (1) The direct materials price variance (2) The direct materials efficiency (yield) variance LINK TO TEXT LINK TO TEXT Calculate for product ABC-8: (1) the direct labour rate variance, and (2) the direct labour efficiency variance. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to o decimal places, e.g. 5,275. Enter answers in thousands.) (1) The direct labour rate variance (2) The direct labour efficiency variance