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) Standard prime cost per unit The actual results for the year are as follows: a. Units produced: 360,000. b. Materials purchased: 2,520,000 pounds @ $5.90. c. Materials used: 2,088,000 pounds. d. Direct labor: 684,000 hours @ $11.28. Required: $20.00 Labor rate variance 30.00 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor efficiency variance $50.00 Material price variance $ 4,788,000 Material usage variance $ 1,728,000 X 2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. $ 2,544,480 Unfavorable Unfavorable Favorable Favorable