l Exercise 1022 Straightforward Computation of Variances (I LO 10-1,10-3) Saskatewan Can Company manufactures recyclable softdrink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the prodnotionengineering staff and the controller. Direct labor: Direct material: Quantity, .25 hour Quantity, 4 kilograms Rate. $16 per hour Price. $.80 per 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 material: $170,100 for 210,000 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances. the direct-material purchase price Page 46I variance. and the direct-labor rate and efciency variances. Indicate whether each variance is favorable or unfavorable. l Exercise 1023 Determination of Variances Using Diagrams (.LO10-3) Refer to the data in the preceding exercise. Use diagrams similar to those in Exhibits 10-2. 10-3. and 10-4 to determine the directmaterial and directlabor variances. Indicate whether each variance is favorable or unfavorable