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.

Direct Labor:

Quantity, $0\mathrm{.}11$ hour

Rate, $$5\mathrm{.}50$ per hour

Direct Material:

Quantity, $4$ kilograms

Price, $$0\mathrm{.}32$ per kilogram

Actual material purchases amounted to $55,200$ kilograms at $$0\mathrm{.}35$ per kilogram. Actual costs incurred in the production of

$12,000$ units were as follows:

Direct labor: $$9,492$ for $1,680$ hours

Direct material: $$17,430$ for $49,800$ 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$).$