Gepp Manufacturing Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product:
Materials quantity per unit....................................... 1 pound
Materials price.......................................... $12.50 per pound
Labor quantity per unit.............................................2 hours
Labor price................................................ $22.50 per hour
During the year, the company made 1,800 units of product. At the end of the year, the following variances had been calculated.
Materials usage variance...................................... $1,000 Favorable
Materials price variance...................................... $860 Unfavorable
Labor usage variance....................................... $4,500 Unfavorable
Labor price variance............................................$7,125 Favorable
Required
a. Determine the actual amount of materials used.
b. Determine the actual price paid per pound for materials.
c. Determine the actual labor hours used.
d. Determine the actual labor price per hour. Round computations to two decimal points.