The Kohler Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2020 budget for the two products (in thousands) was as follows:

LX-4

ABC-8

Total

Level of production in litres

1,800

1,800

3,600

Direct materials

$4,500

$5,625

$10,125

Direct labour

2,700

2,700

5,400

Total direct manufacturing cost

$7,200

$8,325

$15,525

The following planning assumptions were used for the budget: (1) a direct materials yield of 96%, and (2) a direct labour rate of $6 per hour. The actual results for 2020 were as follows (in thousands):

LX-4

ABC-8

Total

Total litres produced

1,710

1,974

3,684

Direct materials

$4,104.00

$6,415.50

$10,519.50

Direct labour

2,808.00

3,276.00

6,084.00

Total direct manufacturing cost

$6,912.00

$9,691.50

$16,603.50

The actual production yield was 95% for LX-4 and 94% for ABC-8. The direct labour cost per hour for both products was $6.50.

Calculate for product LX-4: (1) the direct materials price variance, and (2) the direct materials efficiency (yield) variance.(Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275. Enter answers in thousands.)

(1)

The direct materials price variance

$

FavourableUnfavourableNeither favourable nor unfavourable

(2)

The direct materials efficiency (yield) variance

$

FavourableUnfavourableNeither favourable nor unfavourable

Calculate for product ABC-8: (1) the direct labour rate variance, and (2) the direct labour efficiency variance.(Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275. Enter answers in thousands.)

(1)

The direct labour rate variance

$

FavourableUnfavourableNeither favourable nor unfavourable

(2)

The direct labour efficiency variance

$

FavourableUnfavourableNeither favourable nor unfavourable

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