Waterways (This is a continuation of the Waterways case from Chapters 1 10.) WP11 Waterways Corporation uses very stringent standard costs in evaluating its man- ufacturing 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 Metal Plastic Rubber Per unit 1 lb 12 oz 4 oz Cost 63e per lb $1.00 per Ib 88e per lb Direct Labor Item Cost r unit 15 min $8.00 per hr Labor 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 78c 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. Instructions Answer the following questions about standard costs. (a) What is the materials price variance? (b) What is the materials quantity variance? (c) What is the total materials variance? (d) What is the labor price variance? (e) What is the labor quantity variance? (f) What is the total labor variance? (g) What is the total overhead variance? (h) Evaluate the variances for this company for January. What do these variances suggest to management