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: 460,000. b. Materials purchased: 3,220,000 pounds $5.40. c. Materials used: 2,714,000 pounds. d. Direct labor: 966,000 hours $13.56. 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 x X Unfavorable 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 x Favorable X- Unfavorable