Problem 24.5A Computing and Journalizing Cost Variances (LO24-3, LO24-4) Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,945. It also incurred average direct labor costs of $14 per hour for the 4,045 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,308, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows: 1.30 per gallon Direct materials standard price Standard quantity allowed per case 3.25 gallons Direct labor standard rate 16 per hour 0.75 direct labor hours Standard hours allowed per case 2,600 per month Fixed overhead budgeted Normal level of production 5,200 cases per month Variable overhead application rate 1.50 per case Fixed overhead application rate ($2,600 5,200 cases) 0.50 per case Total overhead application rate 2.00 per case a. Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e zero variance). Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Materials price variance Materials quantity variance