Remember all variances must be designated as "Favorable" or "Unfavorable" The Cat's Meow manufactures gourmet cat food. During the month, it manufactured 5,000 cans of tuna, using 0.10 hour of direct labor per can at a rate of $8.00 per hour. The materials and labor standards for manufacturing the cans of tuna are as follows: UNIT SQ Direct Materials (1 pound of tuna @ $0.50 per pound) Direct Materials (1 can @ $0.35) Direct Labor (0.20 hour@ $7.00) $0.50 $0.35 $1.40 The company actually used 4,900 pounds of tuna. It also purchased 5,000 cans at a price of $.45 per can and 5,500 pounds of tuna at a price of $0.65 per pound. 1 Compute Direct Material Price Variance: a) For the Tuna b) For the Cans 2. Compute the Direct Material Quantity Variance for the Tuna ONLY: Determine the Labor Rate Variance. 3. 4. Calculate the Labor Efficiency Variance