3 4 The primary purpose of this assignment is to give you practice calculating variances. The 5 variances you need to calculate are described under the "REQUIRED heading below. 6 The secondary purpose of this assignment is to improve your proficiency in using Excel as a tool 7 for analysis (as opposed to word processing software) 8 9 REQUIRED: 10 All yellow cells in this template (right) must be completed with formulas referencing other cells. 11 For example, do not just type the number $810,000 in cell F9. Instead, you must enter the formula 12 in the cell to calculate this number. Indicate whether variances are favorable (FAV) or unfavorable (UNF) 13 in the "green" cells beside each amount. Some formulas will reference the problem; other formulas will 14 use cells in the template. Variances should not have a minus sign or parentheses 15 16 SUBMISSION: You must submit your Excel file (1) with the yellow and green cells completed and 17 (2) submit a written report in Word according to instructions included in the Canvas assignment. You must 18 name the file in this format: acc-3365-Excel (1st initial & last name) and acc-3365-Word-(1st initial & last 19 name) Be certain to include your full name in the cell in the upper right corner of the first line (above) in this file. 20 Assignment will not be accepted late other than due to emergency situations as described in the syllabus 21 22 PROBLEM: Mascot Mfg. makes costumes for athletic team mascots and uses a standard costing system. 23 The company recognizes (isolates) materials price variances at the time the materials are purchased. 24. They allocate (apply) OH based on # of DL hours. 25 Following are this year's cost and standards data; assumes 52 weeks per year. 26 27 Actual cost and data from the current month: 28 Actual number of yards of materials purchased 28,500 29 Actual cost of materials purchased $ 810,000 5 28.42 per yd 30 Actual number of yards used in production 27,350 31 Actual number of costumes produced 2,300 32 Actual direct labor hours 133,500 33 Actual direct labor cost $ 5,500,000 $ 41.20 per hr 34 Actual variable MOH (in total) $ 665,000 35 Actual fixed MOH (in total) $ 1,488,000 36 11 Standards for a planned level of production of 2.200 units per month $ 12.50 yards 26.00 average Act Cost In $ 36 37 Standards (for a planned level of production of 2,200 units per month 38 Direct Materials: 39 Yards per costume 40 Price per yard 41 Direct Labor 42 DL Hours per costume 43 DL. Rate per hour 44 Variable MOH standard rate per direct labor hour 45 Fixed MOH standard rate per direct labor hour 46 Total Budgeted Fixed MOH (for 1 month) 62.00 hours S 44.50 average $ 4.35 per D.L. hour $ 9.47 per DL hour $ 1,250,000 Templates Direct Materials Actual Input Quantity x Budgeted (Std) Price Purchases $ 741,000 Actual Cost Example: $ 810,000 Flexible Budget (Applied) Usage Price Variance Efficiency Variance NOTE: There is NO "total" variance because Price & Efficiency Variances are measured at different times for DM. Actual Cost Direct Labor Actual Input Quantity x Budgeted (Std) Rate Flexible Budget (Applied) Price Variance Efficiency Variance Flexible Budget (TOTAL) Variance Actual Cost Incurred Variable Manufacturing Overhead Actual Input Quantity x Budgeted (Std) Rate Flexible Budget (Applied) Allocated Spending Variance Efficiency Varience Flexible Budget (TOTAL) Variance Fixed Manufacturing Overhead Actual Cost Incurred Flexible Budget (Same as Static) Static FOH Budget Allocated Spending Variance Production Volume Variance TOTAL Fixed OH Variance