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Ted Alvarez5 yearsof experience3147papers writtenDegree:GraduateCompetences:Marketing, Business studiesEvery time I order any assignment from Ted, he always does a phenomenal job.User ID: #346029Business plan
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Alex Reynolds3 yearsof experience1987papers writtenDegree:GraduateCompetences:Criminal justice, LawMr. Reynolds has helped me become more efficient at learning, and for that, I am forever grateful.User ID: #358028Capstone project
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Lucy Blair2 yearsof experience635papers writtenDegree:UndergraduateCompetences:Nursing, Social workI can’t even tell you how many times Ms. Blair has saved me from approaching deadlines. She’s a great researcher and is amazing at her job.User ID: #350215Research proposal
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Emily McCook3 yearsof experience2006papers writtenDegree:UndergraduateCompetences:Management, EconomicsEmily knows all the ins and outs of economics. I always come to her for professional advice whenever I have a tough assignment.User ID: #347235Report
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Daniel Benson6 yearsof experience3974papers writtenDegree:GraduateCompetences:Biology, MedicineDaniel is always ready to share his vast knowledge of biology and other life sciences.User ID: #357234Journal article
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Jeff Williamson2 yearsof experience1204papers writtenDegree:UndergraduateCompetences:Psychology, NursingI’m very grateful to Jeff for helping me get better at my studies and explaining every bit of information that I couldn’t understand.User ID: #347574Literature analysis
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Peter Clayton5 yearsof experience4216papers writtenDegree:GraduateCompetences:Business studies, EconomicsMr. Clayton is an absolute pro when it comes to economics. You can always trust him to conduct thorough research on any topic you need.User ID: #340960Research paper
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Martha Ford2 yearsof experience1314papers writtenDegree:UndergraduateCompetences:Nursing, MedicineShe’s an amazing specialist who can not only handle tough assignments but also finish them in record time.User ID: #349423Coursework
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James Bowen4 yearsof experience2665papers writtenDegree:GraduateCompetences:English literature, HistoryJames is fantastic. His writing is eloquent, and it’s a joy to read his papers. He’s been helping me with my assignments for years now.User ID: #355823Reflection essay
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Vanessa Hayward2 yearsof experience564papers writtenDegree:UndergraduateCompetences:Law, Political scienceVanessa has an encyclopedic knowledge of everything that involves law, and I always refer to her whenever I need help with my studies.User ID: #344860Term paper
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Ted Alvarez5 yearsof experience3147papers writtenDegree:GraduateCompetences:Marketing, Business studiesEvery time I order any assignment from Ted, he always does a phenomenal job.User ID: #346029Business plan
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Alex Reynolds3 yearsof experience1987papers writtenDegree:GraduateCompetences:Criminal justice, LawMr. Reynolds has helped me become more efficient at learning, and for that, I am forever grateful.User ID: #358028Capstone project
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Get instant answers to the questions that students ask most often.
See full FAQWATERWAYS CONTINUING PROBLEM: WCP22
(This is a continuation of the Waterways Problem from Chapters 14 through 21.)
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. 58¢ per lb.
Plastic 12 oz. 96¢ per lb.
Rubber 4 oz. 80¢ per lb.
Direct Labor
Item Per Unit Cost
Labor 12 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
74¢ a pound.
Production used 229,000 pounds of raw materials to make 115,500 units in January.
Direct labor spent 15 minutes on each product at a cost of $7.75 per hour.
Overhead costs for January totaled $54,673 variable and $63,800 fixed.
Instructions
Answer the following questions about standard costs.
(a) What is the materials price variance?
(b) What is the materials quantity variance?
(c) What is the total materials variance?
(d) What is the labor price variance?
(e) What is the labor quantity variance?
(f) What is the total labor variance?
(g) What is the total overhead variance?
(h) Evaluate the variances for this company for January. What do these variances suggest to management?
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