inventories. The master budget calls for the company to manufacture and sell 114,000 liters at a budgeted price of $180 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds e $11) (0.5 hours e $38) $22 Variable overhead is applied based on direct labor hours. The variable overhead rate is $90 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $45 per unit. All non-manufacturing costs are fixed and are budgeted at $1.9 million for the coming year At the end of the year, the costs analyst reported that the sales activity variance for the year was $564,000 unfavorable. The following is the actual income statement in thousands of dollars) for the year. $19.69 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Pixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 2.158 2,060 4.630 $8,848 $10.850 1,120 1.300 S2, 420 $8.430 During the year, the company purchased 190,000 pounds of material and employed 47400 hours of direct labor. Required: a. Compute the direct material price and efficiency variances b. Compute the direct labor price and efficiency variances c. Compute the variable overhead price and efficiency variances