Variance

Hello, Sir.

I’m here with another question.

A company manufactures a single product. An extract from a variance control report together with relevant standard cost data is shown below.

Standard direct material cost (10kg × $4 per kg) $40 per unit

Actual results for January

Total direct material cost $4,800
Direct material price variance $1,600 adverse
Direct material usage variance $800 favourable

The actual production in January was ………… units.
__________________________________________

The formula that I know is

[1] Actual Quantity x Actual Price = xxx
[2] Actual Quantity x Standard Price = xxx
[3] Standard Quantity x Standard Price = xxx
________________________________________
Price = [1] + [2] ; when [1] is lesser than [2] = Fav.
Usage = [2] + [3] ; when [3] is lesser than [2] = Fav.

Then, I thought “Total direct material cost $4,800” is the value of [1].
Therefore, I put $3,200 as [2]. Moreover, I brought down Std. P as $4/kg from the given and I got 800kg for Actual Quantity.

However, it was totally wrong when I checked the answer which was 100.

From this point, honestly, I’m not sure what this question is asking.

Would you please explain step-by-step?

Thank you very much.