* Question 12 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. Item Materials Per unit Cost Metal 1 lb. 63t 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 = $3.62 The January figures for purchasing, production, and labor are: The company purchased 218,100 pounds of raw materials in January at a cost of 79 a pound. Production used 218,100 pounds of raw materials to make 110,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $30,265 variable and $74,000 fixed. Answer the following questions about standard costs. * Question 12 * Your answer is incorrect. Try again. What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Materials quantity variance 86,480 Favorable Attempts: 1 of 3 used