Battle Company produces leather belts and initially the actual number of belts produced is 40 (cell B20). After you input your formulas and calculate your variances, the direct material quantity variance should be $72 unfavorable and the variable overhead efficiency variance should be $33 - unfavorable. A variance cell highlighted in green is a favorable variance and a variance cell highlighted in red is an unfavorable variance. Check the accuracy of the formulas in your spreadsheet by decreasing the actual number of belts produced (cell B20) from 40 to 36. Your spreadsheet should automatically recalculate the variances. The new direct material quantity variance should be $108 unfavorable and the new variable overhead efficiency variance should be $132 - unfavorable.

Variable O/H Variances
Total
Standard -	Actual =		Variance
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Rate
Difference in price x	Actual Qty =		Variance
?	?		?
Efficiency
Difference in quantity x	Standard Price =		Variance
?	?		?