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Materials and Labor Variances At the beginning of the year, Craig Company had the...

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Accounting

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:
Units produced: 500,000.
Materials purchased: 3,500,000 pounds @ $5.55.
Materials used: 2,950,000 pounds.
Direct labor: 900,000 hours @ $13.20.
Required:
1. Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.
Material price variance $fill in the blank 1
Unfavorable
Material usage variance $fill in the blank 3
Unfavorable
2. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.
Labor rate variance $fill in the blank 5
Favorable
Labor efficiency variance $fill in the blank 7
Favorable

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