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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

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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. 884 per lb. Direct labor Item Per unit Cost Labor 15 min. $8.00 per hr. Predetermined overhead rate based on direct labor hours = $4.22 The January figures for purchasing, production, and labor are: The company purchased 235,800 pounds of raw materials in January at a cost of 77 a pound. Production used 235,800 pounds of raw materials to make 119,000 units in January. Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $53,651 variable and $77,000 fixed. Answer the following questions about standard costs. Your answer is partially correct. What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to decimal places, e.g. 125.) Materials price variance $ 195714 Favorable 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 $ 3520 Favorable eTextbook and Media Your answer is partially correct. What is the total materials variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total materials variance $ 199234 Favorable What is the total labor variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total labor variance $ 54740 Unfavorable eTextbook and Media Your answer is partially correct. What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Total overhead variance $ 20003 Unfavorable

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