Saskatewan 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. Actual material purchases amounted to 200,000 kilograms at $0.640 per kilogram. Actual costs incurred in the production of 40,000 units were as follows: 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. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter " O " for no effect (i.e., zero variance).)