Materials and Labor Variances At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products: Direct materials (6 lbs. @ $5) $30.00 Direct labor (2 hrs. @ $12) 24.00 Standard prime cost per unit $54.00 The actual results for the year are as follows: 1. Units produced: 350,000. b. Materials purchased: 1,860,000 pounds @ $5.10. c. Materials used: 1,850,000 pounds. d. Direct labor: 725,000 hours @ $11.85. Required: 1. Compute price and usage variances for materials. Material price variance 185,000 X Unfavorable $ $ Material usage variance 1,250,000 Favorable 2. Compute the labor rate and labor efficiency variances. Favorable Labor rate variance Labor efficiency variance 108,750 300,000 $ Unfavorable v Feedback