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 The actual results for the year are as follows: a. Units produced: 420,000. $50.00 b. Materials purchased: 2,940,000 pounds @ $5.60. c. Materials used: 2,520,000 pounds. d. Direct labor: 756,000 hours @ $10.92. Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Unfavorable Material price variance 396,900 X 1,284,000 X Unfavorable 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 2,681,280 X Favorable 630,000 X Favorable