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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

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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 138,000 liters at a budgeted price of $360 per liter this year. The standard direct cost sheet for one liter of the preservative follows. $46 Direct materials Direct labor (2 pounds & $23) (0.5 hours 8 $62) 31 Variable overhead is applied based on direct labor hours. The variable overhead rate is $210 per direct labor hour. The fixed overhead rate (at the master budget level of activity) is $105 per unit. All non manufacturing costs are fixed and are budgeted at $3.1 million for the coming year. At the end of the year, the costs analyst reported that the sales activity varlance for the year was $1.068,000 unfavorable The following is the actual income statement (in thousands of dollars) for the year 547.59 1.968 3.560 13.130 $21.95 VES, 940 tales revenue Las variable coste Direct materials Direct Labor Variable overhead Total variable cont Contribution margin Los fixed cost Fixed manufacturing overhead Non manufacturing costs Total Eixed costs Operating profit 1,240 1. 420 5 2,660 523,230 Nov During the year, the company purchased 214,000 pounds of material and employed 59,400 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) b U Direct materials Price variance Efficiency variance Direct labor Price variance Efficiency variance Variable overhead Price variance Efficiency variance c

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