Required information

EX $10-22,23($Algo$)$ Use the following information for the Exercises below.

Saskatchewan 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.

$\backslash$table$[[$Direct Labor:,Direct Material:$],[$Quantity$,0\mathrm{.}24$ hour,Quantity, $3$ kilograms$],[$Rate$,$ $$12\mathrm{.}00$ per hour,Price, $$0\mathrm{.}58$ per kilogram$]]$

Actual material purchases amounted to $159,600$ kilograms at $$0\mathrm{.}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

EX $10-22($Algo$)$ Part $1$: Use the variance formulas to compute the direct$-$material price and quantity variances...

Required:

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.

Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter $"$O$"$ for no effect $($i$.$e$.,$ zero variance$).$

$\backslash$table$[[$Direct$-$material price variance,,$],[$Direct$-$material quantity variance,,$],[$Direct$-$material purchase price variance,,$],[$Direct$-$labor rate variance,,$],[$Direct$-$labor efficiency variance,,$]]$