Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains 12 quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,625. It also incurred average direct labor costs of $15 per hour for the 4,200 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,950, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor is as follows:

Chapter 24 4. 10.00 points of synthetic motor oil. During May, the company produced 5,000 cost of $20,625, It also incurred average drect Slick Corporation is a small producer o cases of lubricant. Each case contains 12 quats of synthetic eil. To achieve this leveil of production, Sick purchased and used 16,500 galions of direct materials at a labor costs of $15 per hour for the 4,200 hours worked in May by its production personnel, Manufacturing overhead for the month totaled $9,960, of which $2.200 was considered fxed. Slick's standand cost information br each case of syrthetic motor oil is blows. 5 1.30 per galion 3.25 galons Direct materials standand price Standard quereity alowed per case Direct labor standard rate Standard hours lowed per case Fixed overhead budgeted Normal level of production Variable overhead application rate Fixed overhead application rate ($2,600 5,200 cases) S 16 per hour $ 2,600 per month $ 1.50 per case 0.75 drect labor hours 5,200 cases per month 0.50 per case Total overhead application rate s 2.00 per case Instructions a. Compute the materials price and quantity verlances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter variance).) Do not round intermediate calculations for no effect 0.e, zero Materials price variance Materials quantity veriance S 825 Favorable 325 Untavorable b. Compute the labor rate and efficiency variances. Ondicate the effect of each varlance by selecting Favorable" or "Unfavorable". Select "None" and enter "O for no effect G.e., zero variance.)