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 15 min. $9.00 per hr. Labor Predetermined overhead rate based on direct labor hours = $3.62 The January figures for purchasing, production, and labor are: The company purchased 218,200 pounds of raw materials in January at a cost of 78c a pound. Production used 218,200 pounds of raw materials to make 110,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.70 per hour. Overhead costs for January totaled $30,322 variable and $74,000 fixed. Answer the following questions about standard costs. (a)