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: a. Units produced: 470,000 b. Materials purchased: 3,290,000 pounds @ $5.65. c. Materials used: 2,914,000 pounds. d. Direct labor: 846,000 hours $10.92 Required: 1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable Material price variance Unfavorable Material usage variance Unfavorable 2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance Favorable Labor efficiency variance Favorable eBook Calculator Deporte Company produces single-colored t-shirts, Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established Direct materials (2.4 lbs. @ $0.95) $2.28 Direct labor (0.75 hr. 57.40) 5.55 Standard prime cost $7.83 During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs: Direct materials $72,450 Direct labor $169,920 (for 22,450 hrs.) Required: Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable. Material Variances Price variance Favorable Usage variance Unfavorable Labor Variances Rate variance Unfavorable Efficiency variance Favorable