Hello I am working on a project for my Masters class in Financial and Managerial Accounting and have part one of the attached spreadsheet completed. I am not sure if I may of missed some calculations and would like you to review.

Part 1 Cost variance analysis Camping Company manufactures camping tents from a lightweight synthetic fabric.

Each tent uses the following standard material and labor costs.

Standard cost per tent

Direct Labor 2 hours at $10.00 $20

Direct Material 4 yards at $5.25 $21

The following data was recorded for February, the first month of operations:

Fabric purchased 9000 yards $5.00 per yard

Fabric used in production 7,000 yards

Direct labor used 3600 hours $10.75 per hour

Actual number of Tents produced 1,700 Tents

Required:Make sure you do not forget to label the variances U or F.You need to show your work either by cell reference or showing your calculation to the side. 1.Calculate thedirect materials price and quantity variance and designate U or F.Please note that the materials price variance is based on actual material purchased and the quantity variance is based on material used.

MATERIALS

AQ 9000 Price Variance AQ * (AP-SP) 2250 F Materials price varianceQuantity Variance SP * (AQ-SQ) 10500 U Materials Quantity variance

SQ 7,000

AP $5.00

SP $5.25

2.Calculate the direct labor rate and efficiency variances and designate U or F.

Labor rate variance Labor Efficiency variance

LABOR

AQ 3600

SQ 1,700

AP $10.75

SP $10.00 Price Variance AQ * (AP-SP) = 2700 F Labor rate variance Quantity Variance SP * (AQ-SQ) 19000 U Labor Efficiency variance

3. Explain one possible reason for each of the preceding variances listed below. Materials price variance Materials Quantity variance Labor rate variance Labor Efficiency variance