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 $50.00 Standard prime cost per unit The actual results for the year are as follows: a. Units produced: 350,000. b. Materials purchased: 2,450,000 pounds $5.45 c. Materials used: 2,170,000 pounds. d. Direct labor: 770,000 hours @ $11.28. Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Material price variance -3,552,500 Unfavorable Favorable 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 2,864,400 Favorable Favorable