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)$

The actual results for the year are as follows:

a$.$ Units produced: $390,000.$

b$.$ Materials purchased: $2,730,000$ pounds $($a$)$ $$4\mathrm{.}70.$

c$.$ Materials used: $2,379,000$ pounds.

d$.$ Direct labor: $819,000$ hours $($ $$12\mathrm{.}24.$

Required:

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

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

Labor rate variance

Labor efficiency variance