Required information

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$,0\mathrm{.}25$ hour,Quantity, $4$ kilograms$],[$Rate$,$ $$12\mathrm{.}50$ per hour,Price, $$0\mathrm{.}60$ per kilogram$]]$

Actual material purchases amounted to $200,000$ kilograms at $$0\mathrm{.}64$ per kilogram. Actual costs incurred in the production of $40,000$ units were as follows:

Direct labor:

$$137,700$ for $10,800$ hours

Direct material:

$$108,800$ for $170,000$ kilograms

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 $"0"$ 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,,$]]$