Sanitex Inc. manufactures Purox, a hand sanitizer liquid at its Kamloops production facilities. The standard cost of making a barrel of Purox follows:

Direct materials: 12 liters of Super Clorox at $1.50 per liter $18

Direct labor: 4 hours of labor at $16 per hour 64

Variable overhead: applied at a rate of 10 per direct labor hour 40

Total standard variable cost per unit $122

During the month of March, 200 barrels of Purox were manufactured. Sanitex released the following production cost relating to the manufacturing of these 200 barrels:

3000 liters of Super Clorox were purchased at a total cost of $4,320.

2,280 liters of Super Clorox were used in production.

840 hours of direct labor were incurred at at total cost of $13,356.

Note to students: Answer the question in the Excel worksheet template under the tab Question 1 provided by your instructor.

Required:

Part 1: Calculate the direct material price and quantity variances.

Part 2: Calculate the direct labor rate and efficiency variances.