Excel SIM: Basic Variance Analysis and the Impact of Variances on Unit Costs 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. Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: 3 Direct materials: \begin{tabular}{|c|l|} \hline 4 & Standard \\ \hline 5 & Actual \\ 6 & Direct labor: \\ 7 & Standard \\ \hline 8 & Actual \\ 9 & Variable overhead: \\ 10 & Standard \\ 11 & Actual \\ 12 & \\ 13 & Total cost per unit \\ \hline \end{tabular} $2.75 per yard $2.70 per yard $6.60$8.10 13,500 units 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. 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 22 cell references (formulas) for cells D53 - D60. Enter an F or U to indicate the correct variance in cells F54 to F6 ? Using formulas, compute the following. Input all numbers as positive amounts. 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 44 Actual Hours of Input, at Actual Rate \begin{tabular}{|l|l|} \hline 45 & \\ 46 & Variable overhead efficiency variance \end{tabular} \begin{tabular}{|l|l} 47 & Variable overhead rate variance \\ \hline 48 & \end{tabular} 49 Using formulas, compute the amount of the unit cost difference 50 that is traceable to each of the variances computed above