1. Compute the direct materials price and quantity variances and explain their 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 significance.

? X XD SSR FILE HOME INSERT Basic Variance Analysis and the Impact of Variances on Unit Costs - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW - 9 Sign In Paste B I U - - - A - Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font X for Standards for one of Patterson, Inc.'s products is shown below, along with actual A B C D 1 Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: $6.60 $2.75 per yard $2.70 per yard $8.10 Direct materials: 4 Standard 2.4 yards @ 5 Actual 3 yards @ 6 Direct labor: Standard 0.6 hours @ 8 Actual 0.5 hours @ 9 Variable overhead: 10 Standard 0.6 hours @ 11 Actual 0.5 hours @ 10.80 $18.00 per hour $22.00 per hour 11.00 4.20 $7.00 per hour $7.10 per hour 3.55 13 Total cost per unit $21.60 $22.65 15 Excess of actual cost over standard cost per unit $1.05 16 17 Actual production for the month 13,500 units 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. 20 Using formulas, compute the following. Input all numbers as positive amounts. Indicate whether the variances are For U. Write if statements for variance cells F30 to F47. Use cell references (formulas) for cells D53 - D60. Enter an For U to indicate the correct variance in cells F54 to F62. 25 Standard Cost Variance Analysis - Direct Materials Standard Quantity Allowed for Actual Output at Standard Price 27 Actual Quantity of Input, at Standard Price 28 Actual Quantity of Input, at Actual Price 30 31 Materials quantity variance Materials price variance 33 Standard Cost Variance Analysis - Direct Labor Standard Hours Allowed for Actual Output at Standard Rate 35 Actual Hours of Input, at Standard Rate 36 Actual Hours of Input, at Actual Rate Labor efficiency variance Labor rate variance 40 41 Standard Cost Variance Analysis - Variable Manufacturing Overhead 42 Standard Hours Allowed for Actual Output at Standard Rate Actual Hours of Input, at Standard Rate Actual Hours of Input, at Actual Rate 44 46 Variable overhead efficiency variance Variable overhead rate variance 49 Using formulas, compute the amount of the unit cost difference 50 that is traceable to each of the variances computed above. 52 Materials: Quantity variance 54 Price variance 55 Labor: Efficiency variance Rate variance 58 Variable overhead: Efficiency variance 60 Rate variance 59 62 Excess of actual over standard cost per unit