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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 Per unit Item Cost Metal 1 lb. 63 per tb. $1.00 per Ib Plastic Rubber 1202 402 Direct labor 880 per lb Item Per unit Cost Labor 15 min $7.00 per hr Predetermined overhead rate based on direct labor hours $3:59 The January figures for purchasing, production, and laborare The company purchased 226,100 pounds of raw materials in January at a cost of 78c a pound, Production used 226,100 pounds of raw materials to make 114,000 units in January Direct labor spent 18 minutes on each product at a cost of $6.90 per hour Overhead costs for January totaled $33,112 variable and $74,000 fixed (a) Your Arywer Correct Answer (Used) What is the materials price variance? (Round per unit calculations to 2 decimal places, eg. 1.25 and final answer to decimal places 08.125) Materials price variance 5 4522 Favorable (b) Your answer is partially correct What is the materials quantity Valance?Round per unit calculations to 2 decimal places 1.25 and final answer to decimal places,... 1253 Materials quantity variance Favorable

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