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Please show work! Exercise 10-22 Straightforward Computation of Variances (LO 10-1, 10-3) Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a

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Exercise 10-22 Straightforward Computation of Variances (LO 10-1, 10-3) Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller Direct Labor: Direct Material Quantity 0.24 hour Quantity, 3 kilograms Price, $0.58 per kilogram Rate, $12.00 per hour Actual material purchases amounted to 159,600 kilograms at $0.63 per kilogram. Actual costs incurred in the production of 38,000 units were as follows: Direct labor: $116,850 for 9,500 hours Direct material: $79,002 for 125,400 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (indicate the effect of each variance by selecting "Favorable" or "Unfavorable'. Select "None" and enter "o" for no effect (i.e., zero variance).)

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