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.MaterialsItemPer unitCostMetal1 lb.63¢ per lbPlastic12 oz.$1.00 per Ib.Rubber4 oz.88¢ per Ib.Direct laborItemPer unitCostLabor15 min.$9.00 per hr.Predetermined overhead rate based on direct labor hours = $424The January figures for purchasing, production, and labor are:The company purchased 228,200 pounds of raw materials in January at a cost of 79¢ a pound.Production used 228,200 pounds of raw materials to make 115,000 units in January.Direct labor spent 18 minutes on each product at a cost of $8.80 per hour.Overhead costs for January totaled $54,597 variable and $72,000 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, eg. 1.25 and final answer to 0 decimal places, eg.125.)Materials price variance4564FavorableYour answer is correct.What is the materials quantity variance? (Round per unit calculations to 2 decimal places, eg. 1.25 and final answer to O decimal places,eg. 125.)Materials quantity variance%241440iFavorableYour answer is partially correct.What is the total materials variance? (Round per unit calculations to 2 decimal places, eg. 1.25 and final answer to 0 decimal places, eg.125.)Total materials variance6004Favorable

Name: Waterways Corporation uses very stringent standard costs in evaluatin
Uploaded: 2024-03-20T06:33:06.000Z
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Description: 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 standa

Waterways Corporation is using standard costing method to evaluate its manufacturing efficiency. The…

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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, eg. 125.) Materials price variance $ 4564 Favorable Your answer is correct. 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 variance 1440 i Favorable Your answer is partially correct. What is the total materials variance? (Round per unit calculations to 2 decimal places, eg. 1.25 and final answer to O decimal places, eg. 125.) Total materials variance 24 6004 Favorable