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Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 106,000 liters at a budgeted price of $120 per liter this year. The standard direct cost sheet for one liter of the preservative follows.

Direct materials(2 pounds @ $7)$14

Direct labor(0.5 hours @ $30)15

Variable overhead is applied based on direct labor hours. The variable overhead rate is $50 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $25 per unit. All non-manufacturing costs are fixed and are budgeted at $1.5 million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $396,000 unfavorable.

The following is the actual income statement (in thousands of dollars) for the year.

Sales revenue - $12,218

Less variable costs

Direct materials -1,318

Direct labor- 1,460

Variable overhead- 2,430

Total variable costs - $5,208

Contribution margin - $7,010

Less fixed costs

Fixed manufacturing overhead1,080

Non-manufacturing costs1,260

Total fixed costs$2,340

Operating profit$4,670

During the year, the company purchased 182,000 pounds of material and employed 43,400 hours of direct labor.

Required:

a.Compute the direct material price and efficiency variances.

b.Compute the direct labor price and efficiency variances.

c.Compute the variable overhead price and efficiency variances.

(For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

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I need help finding the efficiency variances. The price variances below are correct.

The direct material price variance is $44,000 U

The direct labor price variance is $158,000 U

The variable overhead price variance is $260,000 U

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