1. Compute the direct materials price and quantity varlances and explain their significance. 2. Compute the direct labor rate and efficlency varlances and explain their significance. 3. Compute the varlable manufacturing overhead rate and efficlency varlances and explain their significance. 2 6) . c) .4.; HOME Basic Variance Analysis and the Impact ofVarances on Unit Costs-Excel ? -e, FILE INSERTPAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In B IUA Alignment Number Conditional Format as Cell Cells Editing PsteB Clipboard Al Formatting Table" Styles Styles Font | x . r Standards for one of Patterson, Inc.'s products is shown below, along with actual v C. 1 Standards for one of Patterson, Inc:'s products is shown below, along with actual cost data for the month: 3 Direct materials: 4 Standard $2.75 per yard $2.70 per yard 2.4 yards @ $6.60 3 yards @ $8.10 6 Direct labor 0.6 hours G@ 0.5 hours @ $18.00 per hour $22.00 per hour 10.80 11.00 9 Variable overhead 1n Standard 0 6 hours $7.00 per hour 4.20 Help Sav 11 Actual 12 13 Total cost per unit 14 15 16 17 Actual production for the month 18 Variable overhead is assigned to products based on direct labor hours. There 19 was no beginning or ending inventory of materials for the month. 0.S hours@ $7.10 per hour $21.60 $22.65 of actual cost over standard cost per unit $1.05 13,500 units 20 21 Using formulas, compute the following. Input all numbers as positive amounts Indicate whether the variances are For U. Write if statements for variance cells F30 to F47. Use 22 cell references (formulas) for cells D53 D60. Enter an For U to indicate the correct variance in cells F54 to F62 23 24 25 Standard Cost Variance Analysis Direct Materials 26 Standard Quantity Allowed for Actual Output at Standard Price 27 Actual Quantity of Input, at Standard Price 28 Actual Quantity of Input, at Actual Price 30 Materials quantity variance 31 Materials price variance 32 .Sheeti G 32 33 Standard Cost Variance Analysis - Direct Labor 34 Standard Hours Allowed for Actual Output at Standard Rate 35 Actual Hours of Input, at Standard Rate 36 Actual Hours of Input, at Actual Rate 37 38 Labor efficiency variance 39 Labor rate variance 40 1 Standard Cost Variance Analysis-Variable Manufacturing Overhead 42 Standard Hours Allowed for Actual Output at Standard Rate 3 Actual Hours of Input, at Standard Rate 44 Actual Hours of Input, at Actual Rate 45 46 Variable overhead efficiency variance 7 Variable overhead rate variance 48 49 Using formulas, compute the amount of the unit cost difference so that is traceable to each of the variances computed above. 51 52 Materials: 53 Quantity variance 54 Price variance 55 Labor: .. Sheetl 55 Labor: 56 Efficiency variance 57 Rate variance 58 Variable overhead: 59 Efficiency variance 60 Rate variance 61 62 Excess of actual over standard cost per unit 63 64 65