Waterways Continuing Problem 25 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
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 hr.
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.

Answer the following questions about standard costs.

What is the materials price variance?

Materials price variance

$

FavorableNeither favorable nor unfavorableUnfavorable

What is the materials quantity variance?

Materials quantity variance

$

UnfavorableFavorableNeither favorable nor unfavorable

What is the total materials variance?

Total materials variance

$

Neither favorable nor unfavorableFavorableUnfavorable

What is the labor price variance?

Labor price variance

$

FavorableNeither favorable nor unfavorableUnfavorable

What is the labor quantity variance?

Labor quantity variance

$

Neither favorable nor unfavorableUnfavorableFavorable

What is the total labor variance?

Total labor variance

$

Neither favorable nor unfavorableFavorableUnfavorable

What is the total overhead variance?

Total overhead variance

$

FavorableUnfavorableNeither favorable nor unfavorable