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\mathrm{.}00)$

$$20\mathrm{.}00$

Direct labor $(2$ hrs$.$ @ $$15\mathrm{.}00)$

Standard prime cost per unit

$30\mathrm{.}00$

$$50\mathrm{.}00$

The actual results for the year are as follows:

a$.$ Units produced: $400,000.$

b$.$ Materials purchased: $2,800,000$ pounds @ $$5\mathrm{.}35.$

c$.$ Materials used: $2,520,000$ pounds.

d$.$ Direct labor: $760,000$ hours @ $$12\mathrm{.}00.$

Required:

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