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Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not ideal at this point, but the management is working toward that as a goal. At present, the company uses the following standards.

Materials
Item	Per unit			Cost
Metal		1 lb.			63 per lb.
Plastic		12 oz.			$1.00 per lb.
Rubber		4 oz.			88 per lb.
Direct labor
Item	Per unit			Cost
Labor		15 min.			$9.00 per hr.
Predetermined overhead rate based on direct labor hours = $4.11

Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb 63 per lb. Plastic 12 oz. $1.00 per lb. Rubber 4 oz 884 per lb. Direct labor Item Per unit Cost Labor 15 min $9.00 per hr. Predetermined overhead rate based on direct labor hours = $4.11 The January figures for purchasing, production, and labor are: The company purchased 225,900 pounds of raw materials in January at a cost of 79 a pound. Production used 225,900 pounds of raw materials to make 114,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $50,605 variable and $71,000 fixed. Answer the following questions about standard costs. What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, e.g. 125.) Materials price variance $ e Textbook and Media What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, eg. 125.) Materials quantity variance $ e Textbook and Media What is the total materials variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total materials variance $ e Textbook and Media What is the labor price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to O decimal places, eg. 125.) Labor price variance $ e Textbook and Media What is the labor quantity variance? (Round per unit calculations to 2 decimal places, eg. 1.25 and final answer to decimal places, eg. 125.) Labor quantity variance $ What is the total labor variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total labor variance $ e Textbook and Media What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total overhead variance $ e Textbook and Media

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