Please find the variances and complete requirement #2, it would be much appreciated.

i included a sample letter for requirement #2, thank you.

PROBLEM: Mascot Mfg, makes costumes for athletic team mascots and uses a standard costing system. The company recognizes (Isolates) materials price variances at the time the materials are purchased They allocate (apply) OH based on # of DL hours. Following are this year's cost and standards data; assumes 52 weeks per year. Actual cost and data from the current month: Actual number of yards of materials purchased 28,500 Actual cost of materials purchased $ 810,000 S 28.42 per yd Actual number of yards used in production 27,350 Actual number of costumes produced 2,300 Actual direct labor hours 133,500 Actual direct labor cost $ 5,500,000 $ 41.20 per hr Actual variable MOH (In total) $ 665,000 Actual fixed MOH (in total) $ 1,488,000 12,50 yards 26.00 average $ Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per costume Price per yard Direct Labor D.L. Hours per costume D.L. Rate per hour Variable MOH standard rate per direct labor hour Fixed MOH standard rate per direct labor hour Total Budgeted Fixed MOH (for 1 month) 62.00 hours 44.50 average $ 4.35 per D.L. hour $ 9.47 per DL hour $1,250,000 Requirement #1: Using Excel functionality, calculate these variances using the templates to the right. 1. Direct material variances 2. Direct labor variances 3. Variable MOH variances 4. Fixed MOH variances Requirement #2 Write a one page letter summarizing: 1. What the variances mean, and 2. What conclusion do you draw from the variances? Templates Direct Materials Actual Input Quantity x Budgeted (Std) Price Purchases Actual Cost Example: 810,000 Flexible Budget (Applied) Usage Price Variance Efficiency Variance NOTE: There Is NO "Tota" variance because Price & Emiciency Variances are measured at different times for Direct Labor Actual Actual Input Quantity Flexible Cost x Budgeted (Std) Rate Budget (Applied) Price Variance Efficiency Variance Flexiblo Budget (TOTAL) Varianco Variable Manufacturing Overhood Actual Input Quantity x Budgeted (Std) Roto Actual Cost Incurred Flexible Budgot (Applied) Allocated Sponding Varianco Efficiency Varlonce Flexible Budgot (TOTAL) Variance Fixed Manufacturing Overhead Actual Cost Incurred Static FOH Budget Flexible Budget (Same as Static) Allocated Spending Variance Production Volume Variance TOTAL Fixed OH Variance The basic instructions for the project are on the template. Grading for the Excel (Requirement #1) portion is straight- forward answers are either right or wrong. Grading for the written part (Requirement #2) is a little more subjective. For the 2 parts in Requirement #2: 1. Identify the issues implied by the variances and tell what they mean. 2. Reach a conclusion and make a recommendation There is a sample letter on CANVAS/Files/assignments. The sample is for form only (not content). The sample letter is a transmittal letter (it accompanies a report or proposal). Your letter is not a transmittal letter. Your letter Identifies Issues, and Reaches a conclusion and makes a recommendation (1 and 2 above). Write your letter to me. Your letter should be no more than one page (12 point). After the closing (Best regards), add your name and student ID You should write your letter using short: . Words Sentences Paragraphs . Avoid embedded lists. Rather, use bullet lists as above. April 23, 2014 Mr. Bill Sampl Sampl Oil Company 105 N Hudson Ave Oklahoma City, OK 73102 Dear Mr. Sampl: Bobcat Consulting Group (BCG) is pleased to submit a report regarding Sampl Oil Company's request for the analysis and recommendation of an oil and gas specific Accounting Information System (AIS). This report includes the results of BCG's analysis as well as the recommendation of an AIS. The attached report covers in detail our: Executive Summary; Introduction; Approach; Analysis & General Observations; & Recommendations and Justifications. We would like to thank you for your commitment and participation as we conducted our research and analysis on this important engagement. We are confident that Sampl Oil Company will find our recommendation beneficial and that its implementation will allow your company to become more successful in achieving its mission and objectives. Best regards, Jack Finley Bobcat Consulting Group