Reference no: EM132540779

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 Item Per unit Cost

Metal1 lb.63¢ per lb.

Plastic12 oz.$1.00 per lb

.Rubber4 oz.88¢ per lb.

Direct labor Item Per unitCost

Labor15 min.$8.00 per hr.

Predetermined overhead rate based on direct labor hours = $4.68

The January figures for purchasing, production, and labor are:

1. The company purchased 231,800 pounds of raw materials in January at a cost of 78¢ a pound.Production used 231,800 pounds of raw materials to make 117,000 units in January.Direct labor spent 18 minutes on each product at a cost of $7.70 per hour.
2. Overhead costs for January totaled $71,489 variable and $70,000 fixed.

Question 1: 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.)

Question 2: What is the materials quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)

Question 3: What is the total materials variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)

Question 4: What is the labor price variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)

Question 5: What is the labor quantity variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)

Question 6: What is the total labor variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)

Question 7: What is the total overhead variance? (Round per unit calculations to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 125.)