A B D F G H J K L 1 Functions: IF; Formula: Multiply, Add, Subtract; Cell Referencing 2 3 E6.13 - Using Excel to Calculate Variances PROBLEM 5 The following information is available for Coady's Chocolates: 4 Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem or work area as indicated. Use the IF function Ito denote if each variance is Favorable or Unfavorable. 6 7 3,400 3,000 8 9 10 a. Calculate the direct materials price and quantity variances. 11 Actual production, boxes Budgeted production, boxes Direct materials standards Pounds of chocolate per box Cost per pound Actual direct materials Pounds of chocolate purchased Pounds of chocolate used Cost per pound $ 6.00 12 13 ? 14 9,000 9,500 6.10 AQ X AP AO SP ? Direct Materials Price Variance (AQ*AP)-(AQ*SP) = ? What's the IF function to determine if Favorable or Unfavorable? 15 S 16 17 18 19 20 ? 21 AQ - SP SQ - SP ? Direct Materials Quantity Variance (AQ*SP) - (SQ*SP) = ? What's the IF function to determine if Favorable or Unfavorable? 22 23 24 25 26 b. What might have caused the variances you calculated? 27 28 Coady's Chocolates appears to have purchased a 29 30 higher or lower quality? chocolate at a higher or lower price? 31 32 33 than the standard specified. The higher or lower quality? 34 chocolate appears to have been processed 35 better or worse than? the standard quality, requiring 36 37 38 more or less chocolate? to complete the production run