I need help figuring out the equations for each. Especially C and D. I’d like to

Question

I need help figuring out the equations for each. Especially C and D. I’d like to learn, not just get the answers. Thank you 15 Problem 8-28A Computing variances LO 8-6 Booncoy MenufecruingCompy poduces a single product The following dono apply to the standard cost of materials and labor associated with making the product: Materials quantity per unit Materials price Labor quantity per unit Labor price 1 pound $ 6.28 per pound 2 hours eBook s10.28 per hour During the year, the company made 2040 units of product. At the end of the year, the following variances had been calculated Materials usage variance Materials price variance Labor usage variance Labor price variance $1,240 Favorable S 184 Unfavorable 53, 264 Unfavorable $2,860 favorable Required .. Determine the actua! amount of materials used. b. Determine the actuar price paid per pound for materials. (Round your answer to 2 decimal places.) c. Determine the actual labor hours used d. Determine the actual labor price per hour (Round your answer to 2 decimal pleces.) Prex 15 25Next e here to search

Explanation / Answer

a) Material usage variance = (Standard quantity-actual quantity)Standard price

1240 = (2040*1-X)*6.20

1240 = 12648-6.20X

6.20X = 12648-1240

X(actual quantity ) = 11408/6.20 = 1840 pounds

b) Material price variance = (Standard price-actual price)Actual quantity of material

-184 = (6.20-X)*1840

-184 = 11408-1840X

1840X = 11408+184

X(actual price) = $6.30 per pound

c) Labour usage variance = (Standard hour-actual hour)Standard rate

-3264 = (4080-X)*10.20

-3264 = 41616-10.20X

10.20X = 41616+3264

X(actual hours) = 44880/10.20 = 4400 Hours

d) Labour price variance = (Standard price-actual price)Actual hours

2860 = (10.20-X)4400

2860 = 44880-4400X
4400X = 44880-2860

X(actual price) = 42020/4400 = 9.55 per hour

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