ALL ANSWERS MUST BE WRITTEN IN FORMULA
1. Compute the direct materials price and quantity variances and explain thelr significance. 2. Compute the direct labor rate and efficiency variances and explain their significance. 3. Compute the variable manufacturing overhead rate and efficiency variances and explain their signlficance. Basic Variance Analysis and the Impact of Variances on Unit Costs Excel FILE Sign In INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW % Calibri 11 A A Conditional Format as Formatting Cell Paste Alignment Number Cells Editing R A I U Table Styles Clipboard Styles Font fox I17 I A C E G H 1 Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: 2 3 Direct materials: $2.75 per yard $2.70 per yard 4 Standard 2.4 yards 3 yards $6.60 @ 5 Actual $8.10 6 Direct labor: 7 Standard $18.00 per hour $22.00 per hour 0.6 hours @ 10.80 8 Actual 0.5 hours @ 11.00 9 Variable overhead: 10 Standard $7.00 per hour $7.10 per hour 0.6 hours 4.20 3.55 11 Actual 0.5 hours 12 $21.60 $22.65 13 Total cost per unit 14 $1.05 15 Excess of actual cost over standard cost per unit 16 17 Actual production for the month 13,500 units I17 A C D E F G H $21.60 $22.65 13 Total cost per unit 14 $1.05 15 Excess of actual cost over standard cost per unit 16 17 Actual production for the month 18 Variable overhead is assigned to products based on direct labor hours. There 19 was no beginning or ending inventory of materials for the month 13,500 units 20 21 Using formulas, compute the following. Input all numbers as positive amounts Indicate whether the variances are F or U. Write if statements for variance cells F30 to F47. Use 22 cell references (formulas) for cells D53 - D60. Enter an For U to indicate the correct variance in cells F54 to F62. 23 24 25 Standard Cost Variance Analysis - Direct Materials Standard Quantity Allowed for Actual Output at Standard Price 26 Actual Quantity of Input, at Standard Price 27 Actual Quantity of Input, at Actual Price 28 29 Materials quantity variance 30 Materials price variance 31 32 33 Standard Cost Variance Analysis - Direct Labor Standard Hours Allowed for Actual Output at Standard Rate 34 Sheet1 ... READY + 100% Attempt(s) Hint Conditional Format as Cell Alignment Number Paste I U Cells Editing B Formatting Table Styles Clipboard Font Styles fa I17 A C D F G H 33 Standard Cost Variance Analysis - Direct Labor Standard Hours Allowed for Actual Output at Standard Rate Actual Hours of Input 34 at Standard Rate 35 Actual Hours of Input, at Actual Rate 36 37 Labor efficiency variance 3 Labor rate variance 39 40 41 Standard Cost Variance Analysis - Variable Manufacturing Overhead Standard Hours Allowed for Actual Output at Standard Rate 42 Actual Hours of Input, at Standard Rate Actual Hours of Input 43 Actual Rate 44 at 45 Variable overhead efficiency variance 46 Variable overhead rate variance 47 48 49 Using formulas, compute the amount of the unit cost difference 50 that is traceable to each of the variances computed above 51 52 Materials: 53 Quantity variance 54 Price variance 55 Labor 56 Efficiency variance Sheet1 READY + 100% Attempt(s) Hint m Calibri 11 A A Conditional Format as Cell Editing Paste Alignment Number Cells U Styles Formatting Table T Styles Clipboard Font fx I17 I A C F G H 45 Variable overhead efficiency variance 46 Variable overhead rate variance 47 48 49 Using formulas, compute the amount of the unit cost difference 50 that is traceable to each of the variances computed above. 51 52 Materials: 53 Quantity variance Price variance 54 55 Labor 56 Efficiency variance 57 Rate variance 58 Variable overhead: Efficiency variance 59 60 Rate variance 61 62 Excess of actual over standard cost per unit 63 64 65 66 Sheet1 + READY + 100% Attempt(s) Hint 26 ll
