Chapter 10: Applying Excel

For example, in cell D21 enter the formula = D6.

Notes:

	In the text, variances are always displayed as positive numbers. To accomplish this, you can use the ABS() function in Excel. For example, the formula in cell B25 would be =ABS(F21F22).
	Cells C25 through C27, C34 through C36, and C43 through C45 already contain formulas to compute and display whether variances are Favorable or Unfavorable. Do not enter data or formulas into those cellsif you do, you will overwrite these formulas.

After entering formulas in all of the cells that contained question marks, verify that the amounts match the numbers in the example in the text.

Check your worksheet by changing the direct materials standard quantity in cell B6 to 2.9 pounds, the direct labor quantity standard quantity in cell B7 to 0.6 hours, and the variable manufacturing overhead in cell B8 to 0.6 hours. The materials spending variance should now be $1,500 U, the labor spending variance should now be $3,720 F, and the variable overhead spending variance should now be $60 F. If you do not get these answers, find the errors in your worksheet and correct them.

Data

Exhibit 10-1: Standard Cost Card

Inputs

Standard Quantity

Standard Price

Direct materials

3.0

pounds

$4.00

per pound

Direct labor

0.50

hours

$22.00

per hour

Variable manufacturing overhead

0.50

hours

$6.00

per hour

Actual results:

Actual output

2,000

units

Actual variable manufacturing overhead cost

$7,140

Actual Quantity

Actual price

Actual direct materials cost

6,500

pounds

$3.80

per pound

Actual direct labor cost

1,050

hours

$21.60

per hour

Enter a formula into each of the cells marked with a ? below

Main Example: Chapter 10

Exhibit 10-4: Standard Cost Variance AnalysisDirect Materials

Standard Quantity Allowed for the Actual Output, at Standard Price

?

pounds

?

per pound =

?

Actual Quantity of Input, at Standard Price

?

pounds

?

per pound =

?

Actual Quantity of Input, at Actual Price

?

pounds

?

per pound =

?

Direct materials variances:

Materials quantity variance

?

Materials price variance

?

Materials spending variance

?

Exhibit 10-6: Standard Cost Variance AnalysisDirect Labor

Standard Hours Allowed for the Actual Output, at Standard Rate

?

hours

?

per hour =

?

Actual Hours of Input, at Standard Rate

?

hours

?

per hour =

?

Actual Hours of Input, at Actual Rate

?

hours

?

per hour =

?

Direct labor variances:

Labor efficiency variance

?

Labor rate variance

?

Labor spending variance

?

Exhibit 10-8: Standard Cost Variance AnalysisVariable Manufacturing Overhead

Standard Hours Allowed for the Actual Output, at Standard Rate

?

hours

?

per hour =

?

Actual Hours of Input, at Standard Rate

?

hours

?

per hour =

?

Actual Hours of Input, at Actual Rate

?

hours

?

per hour =

?

Variable overhead variances:

Variable overhead efficiency variance

?

Variable overhead rate variance

Chapter 10: Applying Excel: Exercise (Part 2 of 2)

Requirement 2:

Revise the data in your worksheet to reflect the results for the subsequent period as shown below:

a-1.	What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a-2.	What is the materials price variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b-1.	What is the labor efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b-2.	What is the labor rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your final answer to nearest whole dollar amount.)

c-1.	What is the variable overhead efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

c-2.	What is the variable overhead rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

?