WCP11 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 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 hour

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 78 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.

What is the Materials Quantity Variance?