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.

Basic Variance Analysis and the Impact of Variances on Unit Costs- Excel FILE INSERT REVIEW HOME PAGE LAYOUT FORMULAS DATA VIEW Calibri Paste . AAlignment Number Conditional Format as Ce Cells Editin Formatting Table Styles Styles Clipboard Font E40 1 Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month 2 3 Direct materials: $2.75 per yard $2.70 per yard $6.60 4 Standard 2.4 yards @ 5 Actual $8.10 3 yards @ 6 Direct labor 7 Standard $18.00 per hour 22.00 per hour 0.6 hours @ 10.80 8 Actual 0.5 hours @ 11.00 9 Variable overhead 10 Standard 0.6 hours @ $7.00 per hour $7.10 per hour 4.20 11 Actual 0.5 hours @ 3.55 12 13 Total cost per unit 14 15 Excess of actual cost over standard cost per unit $1.05 16 13,500 units 1/Actual production for the month 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. 19 was no beginning or ending inventory of materials for the month. 20 21 Using formulas, compute the following. Input all numbers as positive amounts Indicate whether the variances are F or U. Write if statements for variance cells F30 to F47. Use cell 2references (formulas) for cells D53 - D60. Enter an F or U to indicate the correct variance in cells F54 to F62. 23 24 25 Standard Cost Variance Analysis - Direct Materials 26 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 29 30 Materials quantity variance 31 Materials price variance 32 33 Standard Cost Variance Analysis - Direct Labor 34 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 37 37 38 Labor efficiency variance 39 Labor rate variance 40 41 Standard Cost Variance Analysis - Variable Manufacturing Overhead 42 Standard Hours Allowed for Actual Output at Standard Rate 43 Actual Hours of Input, at Standard Rate 44Actual Hours of Input, at Actual Rate 45 46Variable overhead efficiency variance 47Variable overhead rate variance 48 49 Using formulas, compute the amount of the unit cost difference 50 that is traceable to each of the variances computed above 51 52 Materials: 53 Quantity variance 54 Price variance 55 Labor: 56 Efficiency variance 57 Rate variance 41 Standard Cost Variance Analysis - Variable Manufacturing Overhead 42Standard Hours Allowed for Actual Output at Standard Rate 43 Actual Hours of Input, at Standard Rate 44 Actual Hours of Input, at Actual Rate 46 Variable overhead efficiency variance 47Variable overhead rate variance 48 49 Using formulas, compute the amount of the unit cost difference 50 that is traceable to each of the variances computed above. 51 52 Materials: 53 Quantity variance 54 Price variance 55 Labor: 56 Efficiency variance 57 Rate variance 58 Variable overhead 59 Efficiency variance 60 Rate variance 61 62 Excess of actual over standard cost per unit 63 ...Sheet1