units produced is 410,000 number of pounds of materials purchased is 2,075,000

Exercise 10-50 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: 410,000. b. Materials purchased: 2,075,000 pounds @ $3.95. c. Materials used: 2,100,000 pounds. d. Direct labor: 825,000 hours @ $14.85. Required: 1. Compute price and usage variances for materials. 2. Compute the labor rate and labor efficiency variances, using both the formula and columnar approaches