(a) What is the materials price variance? Favorable or unfavorable?

(b) What is the materials quantity variance?

(c) What is the total materials variance?

(d) What is the labor price variance?

(e) What is the labor quantity variance?

(f) What is the total labor variance?

(g) Evaluate the variances for this company for January. What do these variances suggest to management?

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. Predetermined overhead rate based on direct labor hours =$4.76 The January figures for purchasing, production, and labor are: The company purchased 235,800 pounds of raw materials in January at a cost of 78/ a pound. Production used 235,800 pounds of raw materials to make 119,000 units in January. Direct labor spent 18 minutes on each product at a cost of $6.80 per hour. Overhead costs for January totaled $72,665 variable and $74,000 fixed. Answer the following questions about standard costs