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:	Direct Material:
Quantity, 0.18 hour	Quantity, 7 kilograms
Rate, $9.00 per hour	Price, $0.46 per kilogram

Actual material purchases amounted to 234,000 kilograms at $0.52 per kilogram. Actual costs incurred in the production of 26,000 units were as follows:

Direct labor:	$46,930 for 4,940 hours
Direct material:	$102,375 for 195,000 kilograms

Required:

1. 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).

Fill in the amounts in the tables below. Required 2> Fill in the amounts in the tables below. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "per kilogram" to 2 decimal places. \begin{tabular}{|l|l|l} Required 1 & Required 2 & Required 3 \\ \hline \end{tabular} Fill in the amounts in the tables below. Required 2 Required 3 >