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, $0\mathrm{.}13$ hour

Rate, $$6\mathrm{.}50$ per hour

Direct Material:

Quantity, $6$ kilograms

Price, $$0\mathrm{.}36$ per kilogram

Actual material purchases amounted to $112,000$ kilograms at $$0\mathrm{.}40$ per kilogram. Actual costs incurred in the production of $16,000$ units were as follows:

Direct labor:

Direct material:

$$16,200$ for $2,400$ hours

$$40,000$ for $100,000$ 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 $"0"$ 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,,$]]$