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: 420,000. $50.00 b. Materials purchased: 2,940,000 pounds @ $4.95. c. Materials used: 2,520,000 pounds. d. Direct labor: 924,000 hours @ $11.16. Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Material price variance -2,793,000 X Unfavorable Material usage variance $ Unfavorable 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 Favorable Unfavorable