A 22156762222222223 28 1 2 J 4 5 6 Units Produced 7 Kilos of Material per Unit 8 Hours of Labor per Unit 9 Material Price per Kilo 10 Labor Cost per Hour 11 Kilos of Material Used 12 Hours of Labor Used 14 B METRIC CHEMICAL, INC. Budget Variance Analysis D E Standard Actual 1,000 3 4 $3.50 $3.25 $10.00 $10.75 3,200 3,900 Actual Price 16 Material Price Variance $3.25 Standard Price Actual Quantity $3.50 Variance 3,200 18 19 Material Quantity Variance Actual Quantity Standard Quantity Standard Price 3,200 Variance $3.50 20 Actual Rate 22 Labor Rate Variance $10.75 Standard Rate $10.00 Actual Hours 3,900 Variance 24 25 Labor Efficency Variance Actual Hours 3,900 Standard Hours Standard Rate $10.00 Variance Procedure: 1. 2. 3. 4. 5. 6. 7. 8. In C19, enter a formula that determines the standard materials quantity needed to produce 1,000 units of ChemGrey 54. In C25, enter a formula that determines the standard hours needed to produce 1,000 units of ChemGrey 54. In E16, enter a formula that determines the material price variance [(Standard Price - Actual Price) * Actual Quantity]. In E19, enter a formula that determines the material quantity variance [(Standard Quantity - Actual Quantity) * Standard Price]. In E22, enter a formula that determines the labor rate variance [(Standard Labor Rate - Actual Labor Rate) * Actual Hours]. In E25, enter a formula that determines the labor efficiency variance [(Standard Hours - Actual Hours) * Standard Rate]. Conditionally format E16, E19, E22, and E25 so that if the contents are unfavorable, the cell shading will be red. Place an IF formula function in E17, E20, E23, and E26 that will state "Favorable" if the value in E16, E19, E22, and E25, respectively, is zero or positive and "Unfavorable" if the value is negative