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 ABSO function in Excel. For example, the formula in cell B25 would be " ABS(F21-F22)" 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 cells-if 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 87 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. 3 Data 4 Exhibit 10-1: Standard Cost Card inputs Standard Qantity Standard 3.0 pounds 0.50 hours $4.00 per pound $22.00 per hour $6.00 per hour 6 Direct materials 7 Direct labor 8 Variable manufacturing overhead 0.50 hours 10 Actual results 1 Actual output 12 Actual variable manufacturing ove 13 2,000 units $7,140 Actual Quantity 6,500 pounds 1.050 hours overhead cost Actual orice 1 Actual direct materials cost $3.80 per pound $21.60 per hour 15 Actual direct labor cost 16 17 Enter a formula into each of the cells marked with a? below 18 Main Example: Chapter 10 19 20 Exhibit 10-4: Standard Cost Variance Analysis-Direct Materials 21 Standard Quantity Allowed for the Actual Output, at Standard Price 22 Actual Quantity of Input, at Standard Price 23 Actual Quantity of Input, at Actual Price ? per pound ? per pound ? per pound ?pounds x ? poundsx ? poundsx 24 Direct materials variances 25 Materials quantity variance 26 Materials price variance 27 Materials spending variance 28 29 Exhibit 10-6: Standard Cost Variance Analysis-Direct Labor per hour- ? per hour ? per hour hours x ? hoursx 30 Standard Hours Allowed for the Actual Output, at Standard Rate 31 Actual Hours of Input, at Standard Rate 32 Actual Hours of Input, at Actual Rate ? hours 33 Direct labor variances 34 Labor efficiency variance 35 Labor rate variance 36 37 Labor spending variance 38 Exhibit 10-8: Standard Cost Variance Analysis-Variable Manufacturing Overhead ? hours x per hour- per hour- per hour- 39 Standard Hours Allowed for the Actual Output, at Standard Rate 40 Actual Hours of Input, at Standard Rate hoursx ? hours x 41 Actual Hours of Input, at Actual Rate 42 Variable overhead variances 43 Variable overhead efficiency variance 44 Variable overhead rate variance 45 Variable overhead spending variance 46 47 48 49