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	$50.00

The actual results for the year are as follows:

1. Units produced: 460,000.
2. Materials purchased: 3,220,000 pounds @ $4.85.
3. Materials used: 2,714,000 pounds.
4. Direct labor: 1,012,000 hours @ $11.16.

Required:

1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.

Material price variance	$	Favorable or Unfavorable?
Material usage variance	$	Favorable or Unfavorable?

2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.

Labor rate variance	$.	Favorable or Unfavorable?
Labor efficiency variance	$.	Favorable or Unfavorable?