Paynesville Corporation manufactures and sells a preservative used in food and drug ma inventories. The master budget calls for the company to manufacture and sell 110,000 lite liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds @ $9) (0.5 hours @ $34) $18 17 Variable overhead is applied based on direct labor hours. The variable overhead rate is $T overhead rate (at the master budget level of activity) is $35 per unit. All non-manufacturing $1.7 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year The following is the actual income statement (in thousands of dollars) for the year. $15,838 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs 1,738 1,760 3,480 $ 6,978 $ 8,860 1,100 1,280 $ 2,380 e on The following is the actual income statement (in thousands of dollars) for the year. $15,838 Sales revenue Less variable costs Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit 1,738 1,760 3,480 $ 6,978 $ 8,860 1,100 1,280 $ 2,380 $ 6,480 During the year, the company purchased 186,000 pounds of material and employed 45,400 hour 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 favorable, or "U" for unfavorable. If there is no effect, do not select either option