Materials and Labour Variances At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products: $20.00 Direct materials (5 kg @ $4.00) Direct labour (2 hrs. @ $11.25) 22.50 Standard prime cost per unit $42.50 The actual results for the year are as follows: a. Units produced: 175,000. b. Materials purchased: 930,000 kilograms @ $4.10. C. Materials used: 925,000 kilograms. d. Direct labour: 362,500 hours @ $11.15. Required: 1. Compute price and usage variances for materials. Material price variance Material usage variance 2. Compute the labour rate and labour efficiency variances. Labour rate variance Labour efficiency variance Previous