Materials and Labor Variances At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products:...

Materials and Labor Variances

At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products:

Direct materials (5 lbs. @ $4.00)$20.00Direct labor (2 hrs. @ $15.00)30.00Standard prime cost per unit$50.00

The actual results for the year are as follows:

1. Units produced: 350,000.
2. Materials purchased: 2,450,000 pounds @ $5.95.
3. Materials used: 2,205,000 pounds.
4. Direct labor: 770,000 hours @ $12.48.

Required:

1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.

Material price variance$Unfavorable 

Material usage variance$

2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.

Labor rate variance$

Labor efficiency variance$