Waterways Continuing Problem 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 uses the following standards. Materials Item Per unit Cost 63 per lb 1 lb. Meta $1.00 per lb. Plastic 12 oz. 88 per lb Rubber 4 oz. Direct labor Item Per unit Cost $8.00 per hr. Labor 15 min. Predetermined overhead rate based on direct labor hours $4.28 The January figures for purchasing, production, and labor are The company purchased 229,000 pounds of raw materials in January at a cost of 78t a pound. Production used 229,000 pounds of raw materials to make 115,500 units in January. Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. overhead costs for January totaled $54,673 variable and $73,800 fixed. Answer the following questions about standard costs. What is the materials price variance? Materials price variance What is the materials quantity variance? Materials quantity variance