I Exercise 10-22 Straightforward Computation of Variances (L0 10-1, 10-3) Saskatewan Can 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, .25 Quantity, 4 hour kilograms Rate, $16 per Price, $.80 per hour kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct labor: $211,900 for 13,000 hours Direct $170,100 for 210,000 material: 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 efciency variances. Indicate whether each variance is favorable or unfavorable. 2. Build a spreadsheet: Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: the standard direct-labor rate is $15 per hour, and the standard direct- material price is $.79 per kilogram