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...

Materials and Labor Variances

At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products:

The actual results for the year are as follows:

1. Units produced: 400,000.


2. Materials purchased: 2,800,000 pounds @ $5.75.


3. Materials used: 2,400,000 pounds.


4. Direct labor: 840,000 hours @ $11.28.
   


5. Compute the labor rate and labor efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable.