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 Materials 2 lb. 80.00 per lb. Direct labor Item Per unit Cost Labor 15 min. $7.00 per hr. Predetermined overhead rate based on direct labor hours - $3.44 The January figures for purchasing, production, and labor are: The company purchased 235,900 pounds of raw materials in January at a cost of 78 a pound. Production used 235,900 pounds of raw materials to make 119,000 units in January. Direct labor spent 18 minutes on each product at a cost of $6.90 per hour. Overhead costs for January totaled $35,499 variable and $72,000 fixed. Answer the following questions about standard costs.