Please answer each part of the question. Patterson, Inc. has provided details of its actual cost data for the month. The Controller has asked you to compute the basic variances and the impact of those variances on unit costs.

Variable overhead is assigned to products based on direct labor hours. There was no beginning or ending inventory of materials for the month.

Required:

Using formulas, compute the following. Input all numbers as positive amounts.

$($Hint: This can be done using the ABS function$).$

$($Use cells A$5$ to G$16$ from the given information to complete this question. All formulas must return positive values. For each variance, select either "Favorable" or "Unfavorable".

Using formulas, compute the amount of the unit cost difference that is traceable to each of the variances computed above.