Becky Company produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor: Leather (12 strips @ $20) $240 Direct labor (10 hours @ $10) $100 Total prime cost $360 During the year, Becky produced 160 boots. Actual leather purchased was 1,700 strips at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,800 hours at $14 per hour. Calculate the labor rate variance. $7,200 F $6,400 U $6,400 F $7,200 U 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) Direct labor (2 hrs. @ $15.00) Standard prime cost per unit $20.00 30.00 $50.00 The actual results for the year are as follows: a. Units produced: 490,000. b. Materials purchased: 3,430,000 pounds @ $5.10. c. Materials used: 2,842,000 pounds. d. Direct labor: 882,000 hours @ $12.12. Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Material price variance 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 Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Material price variance 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