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) $20.00 30.00 Standard prime cost per unit The actual results for the year are as follows: a. Units produced: 400,000. $50.00 b. Materials purchased: 2,060,000 pounds @ $3.95. c. Materials used: 2,100,000 pounds. d. Direct labor: 825,000 hours @ $14.85. 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 390,000 X x X X 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 x x x x