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$.$ @ $$4\mathrm{.}00)$ $$20\mathrm{.}00$

Direct labor $(2$ hrs$.$ @ $$15\mathrm{.}00)30\mathrm{.}00$

Standard prime cost per unit $$50\mathrm{.}00$

The actual results for the year are as follows:

Units produced: $500,000.$

Materials purchased: $3,500,000$ pounds @ $$5\mathrm{.}55.$

Materials used: $2,950,000$ pounds.

Direct labor: $900,000$ hours @ $$13\mathrm{.}20.$

Required:

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

Material price variance $fill in the blank $1$

Unfavorable

Material usage variance $fill in the blank $3$

Unfavorable

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

Labor rate variance $fill in the blank $5$

Favorable

Labor efficiency variance $fill in the blank $7$

Favorable