Exercise 16.40 (Static) Variable Cost Variances (LO 16.5) Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120.000 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $12 per unit All nonmanufacturing costs are fixed and are budgeted at $2.2 million for the coming year At the end of the yoar, the costs analyst reported that the sales activity variance for the year was $336,000 favorable. The foliowing is the actual income statement (in thousands of dollars) for the year for Golden Food Products During the year, the compary purchased 320,000 pounds of material and employed 32,500 hours of direct labor Required: a. Compute the direct materials price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficlency variances Note: For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or " U " for unfavorable. If there is no effect, do not select either option