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 Metal 1 lb. 63 per lb. Plastic 12 oz. $1.00 per lb. Rubber 4 oz. 88 per lb. Direct labor Item Per unit Cost Labor 15 min. $8.00 per hr. rchi Predetermined overhead rate based on direct labor hours - $4.56 The January figures for purchasing, production, and labor are: The company purchased 215,900 pounds of raw materials in January at a cost of 78 a pound. Production used 215,900 pounds of raw materials to make 109,000 units in January. Direct labor spent 18 minutes on each product at a cost of $7.90 per hour. Overhead costs for January totaled $54.517 variable and $75,000 fixed. & iR