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 112,000 liters at a budgeted price of $165 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials Direct labor (2 pounds @$10) (e.s hours $36) $20 18 Variable overhead is applied based on direct labor hours. The variable overhead rate is $80 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $40 per unit. All non-manufacturing costs are fixed and are budgeted at $1.8 million for the coming year. ces At the end of the year, the costs analyst reported that the sales activity varlance for the year was $522,000 unfavorable The following is the actual income statement (in thousands of dollars) for the year Sales revenue Less variable costs Direct materials $17,738 1,948 1,910 Direct labor Variable overhead Total variable costs 4.030 $7,888 $ 9,85e Contribution margin Less fixed costs Fixed nanufacturing overhead Non-manufacturing costs Total fixed costs 1,110 1,290 $2,400 Operat ing profit $ 7,450 During the year, the company purchased 188,000 pounds of material and employed 46,400 hours of direct labor. Required: a. Compute the direct materlal price and efficiency varlances b. Compute the direct labor price and efficlency variances c. Compute the varilable overhead price and efficiency variances (For all requirements, enter your answers in whole dollars. Indicate the effect of each verianice by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials la. Price vanance Efficiency vanance Drect labor Price vanance Eficiency variance Variable overhead Price varance Efficency variance