At the beginning of the year, Shults Company had the following standard cost sheet for one of

Question:

At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products:
Direct materials (6 lbs. @ $ 5) .....$ 30.00
Direct labor (2 hrs. @ $ 12) ...... 24.00
Standard prime cost per unit .......$ 54.00
The actual results for the year are as follows:
a. Units produced: 350,000.
b. Materials purchased: 1,860,000 pounds @ $ 5.10.
c. Materials used: 1,850,000 pounds.
d. Direct labor: 725,000 hours @ $ 11.85.
Required:
1. Compute price and usage variances for materials.
2. Compute the labor rate and labor efficiency variances.