Basic variance analysis for direct materials, direct labor and variable overhead 1. Compute the direct material, direct labor and variable overhead variances. XUS ? - Basic variance analysis for direct materials, direct labor and variable overhead - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME Sign In * Calibri -11 AA M Paste BIU HH- A % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font A16 fr Complete the following table comparing actual costs to the flexible budget and D E 1 The standard cost card for a single unit of Robinson, Inc.'s products is shown below. 2 3 Standard Quantity 2.5 yards @ 0.5 hours @ 0.5 hours Standard Price/Rate $8.00 per yard $18.00 per hour $10.00 per hour Standard Unit Cost $20.00 9.00 5.00 4 Direct materials: 5 Direct labor: 6 Variable overhead (based on labor hours): 7 8 Budgeted production for the month 9 Actual production for the month 10 11 Actual Costs incurred to Produce 13,500 units: 12 Direct Materials Purchased and Used 13 Direct Labor Paid 14 Variable Overhead incurred 14,000 units 13,500 units 35,100 yards @ 7,425 hours 7,425 hours $7.00 per yard $17.50 per hour $12.00 per hour Total Actual Cost $245,700 $129,938 $89,100 15 Complete the following table comparing actual costs to the flexible budget and master budget. Use formulas for 15 the spending and volume variances so that variance will appear as a negative number if unfavorable and a positive number is favorable. 17 Spending Flexible Volume Master 18 Actual Costs Variances Budget Variances Budget 19 Direct materials: $245,700 $280,000 20 Direct labor: $129,938 $126,000 Sheeti READY 100% Basic variance analysis for direct materials, direct labor and variable overhead 1. Compute the direct material, direct labor and variable overhead variances. 5 X KA FILE Basic variance analysis for direct materials, direct labor and variable overhead - Excel ? HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in Calibri - 11 A A % BIU- A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Fort Styles > Complete the following table comparing actual costs to the flexible budget and Paste Clipboard A16 B D F Master Budget $280,000 $126,000 $70,000 17 Spending Flexible Volume 18 Actual Costs Variances Budget Variances 19 Direct materials: $245,700 20 Direct labor: $129,938 21 Variable overhead: $89,100 22 23 24 Using the formulas provided, compute the following variances. 25 Write if statements to enter an For U to indicate whether the variance is favorable or unfavorable. 26 27 Direct materials: Variance For U Price Variance - AQ * (SP-AP) 29 Quantity Variance = SP * (SQ-AQ) 30 Total Spending Variance 31 Direct Labor Rate Variance =AH (SR-AR) 33 Efficiency Variance = SR (SH - AH) 34 Total Spending Variance 35 Variable Overhead 36 Rate Variance AH (SR-AR) Efficiency Variance = SR (SH - AH) 38 Total Spending Variance 39 Sheet1 28 32 37 READY HE E E 100%
