Answer:
Actual amount of material used = 1,720 pounds
Actual price paid per pound of material = $13
Actaul labour hours used = 2000hours
Actual labour price per hour = $18.94
Explanation:
Actual amount of material used will calculated using
material usage variance = (standard quantity - actual quantity)*standard price
$1000 = ( 1800 - AQ)* $12.50
1,000 = 22,500 - 12.50AQ
1,000 - 22,500 = - 12.50AQ
- 21,500 = -12.50AQ
AQ = -21500/-12.50 = 1,720
Note: Standard quantity = Actual production unit * standard quntity per unit
= 1,800 * 1 = 1,800 pounds
Actual price paid per unit of material
Material price variance = (standard price - Actual price)*actual quantity
-860 = ($12.50 - AP) 1,720
-860 = 21500 - 1720AP
-860 -21500 = -1720AP
-22,360 = -1720AP
AP = -22,360/-1720 = $13
Actual Labour hour used
Labour hours usages variance = (standard hour - actual hours)* standard rate per hour
-4500 = ( 1800 - AH) 22.50
-4500 = 40500 -22.50AH
-4500 -40500 = -22.50AH
-45,000 = -22.50AH
AH = -45,000/-22.50
AH = 2000 hours
Actual labour price per hour
labour rate varaince = standard price - actual price )*actual quantuty
7125 = ( 22.50 - AP)*2000
7125 = 45,000 - 2000AP
7125 - 45,000 = -2000AP
-37875 = -2000AP
AP = -37875/-2000
AP = 18.9375 = 18.94
