PartZ (Chapter 25) 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 ses the following standards Materials ltem Metal Plastic Rubber Per Unit 1 lb 12 oz Cost 59 per lb 95 per lb 82 per lb oz. Item Labor Direct Labor Per Unit 12 min Cost $8.00 per hr Predetermined overhead rate based on direct labor hours = $4.35 The January figures for purchasing, production, and labor are The company purchased 229,100 pounds of raw materials in January at a cost of 74 a pound Production used 229,000 pounds of raw materials to make 115,250 units in January Direct labor spent 30 minutes on each product at a cost of $7.15 per hour Overhead costs for January totaled $54,750 variable and $63,500 fixed. Instructions Use Excel Worksheet 7 to determine the: a. Materials Price Variance b. Materials Quantity Variance c. Total Materials Variance d. Labor Price Variance e. Labor Quantity Variance f. Total Labor Variance g. Total Overhead Variance h. Evaluate the variances for this company for January. What do these variances suggest to management