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.

Direct Labor:	Direct Material:
Quantity, 0.14 hour	Quantity, 7 kilograms
Rate, $7.00 per hour	Price, $0.38 per kilogram

Actual material purchases amounted to 147,600 kilograms at $0.425 per kilogram. Actual costs incurred in the production of 18,000 units were as follows:

Direct labor:	$22,338 for 3,060 hours
Direct material:	$55,845 for 131,400 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. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Direct-material price variance Direct-material quantity variance Direct-material purchase price variance Direct-labor rate variance Direct-labor efficiency variance