Materials and Labor Variances At the beginning of the year, Shults Company had the following standard cost sheet for one of its plastic products:
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.
1. Compute price and usage variances for materials.
2. Compute the labor rate and labor efficiency variances.