Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 118,000 liters at a budgeted price of $210 per liter this year. The standard direct cost sheet for one liter of the preservative follows.

Direct materials	(2 pounds @ $13)	$	26
Direct labor	(0.5 hours @ $42)		21

Variable overhead is applied based on direct labor hours. The variable overhead rate is $110 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $55 per unit. All non-manufacturing costs are fixed and are budgeted at $2.1 million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $648,000 unfavorable.

The following is the actual income statement (in thousands of dollars) for the year.

Sales revenue	$	23,798
Less variable costs
Direct materials		2,578
Direct labor		2,360
Variable overhead		5,830
Total variable costs	$	10,768
Contribution margin	$	13,030
Less fixed costs
Fixed manufacturing overhead		1,140
Non-manufacturing costs		1,320
Total fixed costs	$	2,460
Operating profit	$	10,570

During the year, the company purchased 194,000 pounds of material and employed 49,400 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. (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.)

a.	Direct materials:
	Price variance
	Efficiency variance
b.	Direct labor:
	Price variance
	Efficiency variance
c.	Variable overhead:
	Price variance
	Efficiency variance