1) Jason Manufacturing has developed the following cost standards for its product.

Direct Costs	Standard Quantity	Standard Input Cost per Unit
Direct Materials	6 pounds per unit	$9 per pound
Direct Labor	2. 5 hours per unit	$18 per hour
Indirect Costs	Cost per Input Unit
Variable Overhead	$6 per Direct Labor Hour

The following information relates to the month of May.

Direct Materials purchased and used	$8.50 per pound	148,000 pounds
Direct Labor	$20 per hour	61,000 hours
Actual Variable Overhead		$362,000
Actual Units Produced		24,000 units

Create a spreadsheet to calculate the following variances. Be sure to show the calculations. The check figures are included in parenthesis.

1. Direct Materials price variance. (74,000F)
2. Direct Materials quantity variance. (36,000U)
3. Direct Labor rate variance. (122,000U)
4. Direct Labor efficiency variance. (18,000U)
5. Variable Overhead spending varianc (4,000F)
6. Variable Overhead efficiency variance. (6,000U)

2) Create a spreadsheet that includes the entries for the following transactions.

Record the purchase of materials and the associated price variance.

Account	Debit	Credit
Raw Materials	1,332,000
Cash

Record the use of materials and the associated quantity variance.

Account	Debit	Credit
Work in Process
Raw Materials		1,332,000

Record the use and payment of direct labor costs and the associated rate and efficiency variances.

Account	Debit	Credit
Work in Process
Cash		1,220,000