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Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are...

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Accounting

image 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. Predetermined overhead rate based on direct labor hours =$3.62 The January figures for purchasing, production, and labor are: The company purchased 218,100 pounds of raw materials in January at a cost 794 a pound. Production used 218,100 pounds of raw materials to make 110,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $30,265 variable and $74,000 fixed. Answer the following questions about standard costs. (a) What is the materials price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.) Materials price variance $ (b) What is the materials quantity variance? (Round per unit calculations to 2 decimal places, eg. 1.25 and final answer to 0 decimal places, eg. 125.) Materials quantity yariance $

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