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 120,000 liters at a budgeted price of $225 per liter this year. The standard direct cost sheet for one liter of the preservative follows.

 

Direct materials	(2 pounds @ $14)	$	28
Direct labor	(0.5 hours @ $44)		22

 
Variable overhead is applied based on direct labor hours. The variable overhead rate is $120 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $60 per unit. All non-manufacturing costs are fixed and are budgeted at $2.2 million for the coming year.

 

At the end of the year, the costs analyst reported that the sales activity variance for the year was $690,000 unfavorable.

 

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

Sales revenue	$	25,938
Less variable costs
Direct materials		2,788
Direct labor		2,510
Variable overhead		6,480
Total variable costs	$	11,778
Contribution margin	$	14,160
Less fixed costs
Fixed manufacturing overhead		1,150
Non-manufacturing costs		1,330
Total fixed costs	$	2,480
Operating profit	$	11,680

During the year, the company purchased 196,000 pounds of material and employed 50,400 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.