Calculation of materials and labor variances Petersen Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: Materials-1 lb plastic @ $3.00 ..... $ 3.00 Direct labor-1.6 hr @ $10.00. 16.00 (8000 HRS) - The charges to the manufacturing department for Novem- ber, when 5,000 units were produced, follow: Materials-5,300 lb Direct labor-8,200 hr @ $9.80 The Purchasing department normally buys about the same quantity as is used in production during a month. In November, S300 lb were purchased at a price of $2.90 per pound. Required: Calculate the following variances from standard costs for the data given 1. Materials quantity. 2. Materials purchase price (at time of purchase). 3. Labor efficiency. 4. Labor rate