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 100,000 liters at a budgeted price of $75 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Variable overhead is applied based on direct labor hours. The variable overhead rate is $20 per direct-labor hour. The fixed overheac rate (at the master budget level of activity) is $10 per unit. All non-manufacturing costs are fixed and are budgeted at $1.2 million for th coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $270,000 unfavorable. Also assume (no need to figure out) that 94,000 units of the preservative were manufactured and sold. The following is the actual income statement (in thousands of dollars) for the year. Variable overhead is applied based on direct labor hours. The variable overhead rate is $20 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All non-manufacturing costs are fixed and are budgeted at $1.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $270,000 unfavorable. Also assume (no need to figure out) that 94,000 units of the preservative were manufactured and sold. The following is the actual income statement (in thousands of dollars) for the year. During the year, the company purchased 176,000 pounds of material and employed 40,400 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 (spending) and efficiency variances. You do not have to do Part (c) at this time. Just to get credit, put the answers. The answers are: $122,000U for the price (spending) variance; and $132,000F for the efficiency variance. (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.)