Barker Production Company has developed the following

standards

for one of its products.

STANDARD VARIABLE COST CARD

One Unit of Product

Materials: 30 square feet $5 per square foot $150.00

Direct labor: 16 hours $7 perh hour 112.00

Variable manufacturing overhead: 16 hours x$5 per hour 80.00

Total standard variable cost per unit $342.00

The company records materials price variances at the time of

purchase. The following activity occurred during the month

of

April:

Materials purchased: 80,000 sq. feet at $5.30 per

sq. foot

Materials used: 74,000 square feet

Units produced 2,500 units

Direct labor: 42,000 hours at $6.70 per hour

Required:

Prepare an excel spreadsheet that details the

following(

be sure to indicate Favorable or Unfavaorable):

a.Calculate the direct materials price variance

and

provide 1 possible cause of this variance.

b.Calculate the direct materials usage variance

and

provide 1 possible cause of this variance.

c.Calculate the direct labor rate variance and provide

1

possible cause of this variance.

d.Calculate the direct labor efficiency variance

and

provide one possible cause of this vaiance..