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I need a step by step explanation to problem 14-26 in order to make me understand the solution: 14-26 Direct Materials and Direct Labor Variance

I need a step by step explanation to problem 14-26 in order to make me understand the solution:

14-26 Direct Materials and Direct Labor Variance

Schmidt Machinery Company used 3,450 pounds of aluminum in June to manufacture 920 units. The company paid $28.50 per pound during the month to purchase aluminum. On June 1, the company had 50 pounds of aluminum on hand. At the end of June, the company had only 30 pounds of aluminum in its warehouse. Schmidt used 4,200 direct labor hours in June, at an average cost of $41.40 per hour.

Required: Compute for June

Schmidts purchase-price and usage variances for aluminum.

Schmidts direct labor rate and efficiency variances.

Standard Cost Sheet

SCHMIDT MACHINERY COMPANY Standard Cost Sheet Product: XV1

Descriptions:

Quantity

Unit Cost

Subtotal

Total

Direct materials:

Aluminum

4 pounds

$25

$100

PVC

1 pound

40

40

Direct Labor

5 hours

40

200

Variable factory overhead

5 hours

12

60

Total variable manufacturing cost

400

Fixed factory overhead*

5 hours

24

120

120

Standard manufacturing cost per unit

$520

Standard variable selling and administrative expensive per unit

$50

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