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: Direct materials Direct labor (3 pounds $2) 56 (0.25 hours $32) 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 year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: Sales revenue Less variable costs Direct materials Direct labor Variable overhead i Total variable costs $ 7,800 800 992 515 $2,307 Contribution margin $5,493 ces Less fixed costs Fixed manufacturing overhead 1,488 2,125 $3,605 $ 1,888 Nonmanufacturing costs Total fixed costs Operating profit During the year, the company 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 efficiency variances. Indicate the effect of each variance by selecting "F" for