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) $20.00 Direct labor (2 hrs. $15.00) 30.00 Standard prime cost per unit $50.00 The actual results for the year are as follows: a. Units produced: 400,000 b. Materials purchased: 2,800,000 pounds @ $5.65 c. Materials used: 2,520,000 pounds. d. Direct labor: 840,000 hours $12.72.