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 lbs @ $ $
Direct labor hrs @ $
Standard prime cost per unit $
The actual results for the year are as follows:
Units produced:
Materials purchased: pounds @ $
Materials used: pounds.
Direct labor: hours @ $
Required:
Compute price and usage variances for materials. Enter amounts as positive numbers and select Favorable or Unfavorable.
Material price variance $fill in the blank
Unfavorable
Material usage variance $fill in the blank
Unfavorable
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
Favorable
Labor efficiency variance $fill in the blank
Favorable
