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: 440,000. b. Materials purchased: 3,080,000 pounds @ $4.50. c. Materials used: 2,640,000 pounds. d. Direct labor: 836,000 hours @ $11.76. 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 1,540,000 1,980,000 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 2,708,640 V Favorable Labor efficiency variance 2,040,000 X Favorable