A E Standard Standard Cost per DM/Hour Qty/Hrs per Standard Cost Unit per Unit Direct Materials Direct Labor Variable Overhead $7.50 2.5 $18.75 $19.00 $6.50 22 2 $38.00 $13.00 Planned production (units) 10,000 Actual cost information is below: Units Produced 9,500 Materials Purchased and Used 27,500 Cost of Direct Materials $181,000 Direct Labor Hours 18,500 Direct Labor Cost $406,000 Variable Overhead Cost $115,000 Fixed Overhead Cost $325,000 TheBig4Accountant @TheBig4 Tweets interns analyzing a $3 variance money is.money- K L PART #1: Direct Material Variances Calculate the Materials Price, Quantity, and Spending Variance. Remember, with variances we don't care about the sign of the number - we care about the interpretation of the variance. Use the ABS function to calculate the absolute value of variance amounts in the green cells and use an IF function in the orange cells to determine the favorability ("U" or "F") of the variances. Remember to cell reference everything! Actual x Actual AQ AP Materials Price Variance Direct Materials Variances Actual x Standard AQ SP Materials Spending Variance Materials Quantity Variance Standard Standard SQ SP PART #2: Direct Labor Variances Calculate the Direct Labor Rate. Efficiencv. and Spending Variance. Use the ABS function to calculate the absolute value of variance amounts in the green cells and use an IF function in the orange cells to determine the favorability ("U" or "F") of the variances. Remember to cell reference everything! Actual x Actual AH AR Labor Rate Variance Direct Labor Variances Actual x Standard AH SR Labor Spending Variance Labor Efficiency Variance Standard x Standard SH SR