Question
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 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)$20.00Direct labor (2 hrs. @ $15.00)30.00Standard prime cost per unit$50.00
The actual results for the year are as follows:
- Units produced: 350,000.
- Materials purchased: 2,450,000 pounds @ $5.95.
- Materials used: 2,205,000 pounds.
- Direct labor: 770,000 hours @ $12.48.
Required:
1.Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.
Material price variance$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$
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