Actual:

Units 1000

Direct material purchased 13 000 kilograms @ $1.6 per kilogram

Direct material used 10 000 kilograms

Direct labour 2 000 hours @ $20 per hour

Standards:

Direct material 11 kilograms @ $1.5 per kilogram

Direct labour hours 2.5 hours @ $15 per hour

How to use Excel file to calculate the direct material and direct labor variances for the above question? Use Excel formulas to determine whether each variance is favorable or unfavorable.