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 108,000 liters at a budgeted price of $135 per liter this year. The standard direct cost sheet for one liter of the preservative follows.

Direct materials	(2 pounds @ $8)	$	16
Direct labor	(0.5 hours @ $32)		16

Variable overhead is applied based on direct labor hours. The variable overhead rate is $60 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $30 per unit. All non-manufacturing costs are fixed and are budgeted at $1.6 million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $438,000 unfavorable.

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

Sales revenue	$	13,998
Less variable costs
Direct materials		1,528
Direct labor		1,610
Variable overhead		2,930
Total variable costs	$	6,068
Contribution margin	$	7,930
Less fixed costs
Fixed manufacturing overhead		1,090
Non-manufacturing costs		1,270
Total fixed costs	$	2,360
Operating profit	$	5,570

During the year, the company purchased 184,000 pounds of material and employed 44,400 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.)

a Direct materials: Price variance Efficiency variance b. Direct labor Price variance Efficiency variance Variable overhead Price variance Efficiency variance C