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Use excel formulas to answer the following questions :

1. Given the actual level of activity (number of cases of Nut muesli produced), what are the standard costs? In other words, what would be the costs shown in Muesli AG's flexible budget for Nut muesli?

2. Calculate the material price variances for all the components that go into a box of Nut muesli. (We are concerned only with production variances at this point.) Place your calculations in the column titled "Price/Spending Variances". a. Indicate whether the variance is unfavorable or favorable.

3. Calculate the labor rate variance. a. Indicate whether the variance is unfavorable or favorable.

4. Calculate the variable overhead rate variance. a. Indicate whether the variance is unfavorable or favorable.

5. Calculate the materials quantity variances for each of the components that go into a box of Nut muesli. Place your calculations in the column title "Efficiency Variances". a. Indicate whether the variance is unfavorable or favorable.

6. Calculate the labor efficiency variance. a. Indicate whether the variance is unfavorable or favorable.

7. Calculate the variable overhead efficiency variance. a. Indicate whether the variance is unfavorable or favorable.

8. Hypothesize as to what could have caused each of these variances. Could what you know about the current labor situation at Muesli AG have contributed to any of these variances? Explain.

9. Which variances should be investigated further? Why?

F G H K L M N P Q R S T A B B CD E 1 Insert formulas and cell references into the "gold" cells below. 2 3 Planned Quantities: 158,400 boxes 1,100 cases Standard Costs Quantity Quantity per case Standard Cost per case Total Quantities for the Total Cost for the Month WERP Muesli Nut per box 1kg 0.12 0.28 1.82 per kg 0.92 per kg 0.99 per kg 1 each 1 each 0.40 kg 0.30 kg 0.30 kg 4 5 Direct Materials: 6 bags for packaging (large) 7 boxes for packaging (large) 8 nuts 9 oats 10 wheat 11 Total Direct Materials 12 Direct Labor 13 Variable Overhead 14 Total Standard Cost 15 16 Actual Production Results: 144 144 57.60 43.20 43.20 Nut $S-FOI 158,400 kg 158,400 kg 63,360 kg 47,520 kg 47,520 kg SS-F11 500g 1kg 17.28 40.32 104.83 39.74 42.77 244.94 materials 4.00 labor 3.00 VOH 251.94 per case 19,008.00 44,352.00 115,315.20 43,718.40 47,044.80 269,438.40 4,400.00 3,300.00 277,138.40 planned cost 20% wheat 30% oat 20% nut 1 box /1 bag 12.00 per hour 9.00 per DLH 0.33 0.33 367 hours 367 DLH minimum 151,200 boxes Standard Quantity [1] 1,050 cases Standard Cost [1] Actual Quantity Standard Cost Variances Price/Spend- Efficiency ing Variances U/F Variances U/E [2], [3], [4] [5], [6], [7] Check Figure Check Figure (Total Variance) (Actual - Std.) Actual Cost 17 18 Direct Materials: 19 bags for packaging (large) 20 boxes for packaging (large) 21 nuts 22 oats 23 wheat 24 Total Direct Materials 25 Direct Labor 26 Variable Overhead 27 Total Standard Cost 28 151,400 each 151,200 each 60,400 kg 45,440 kg 45,360 kg 16,654.00 42,336.00 112,000.00 41,804.80 44,906.40 257,701.20 4,284.00 3,240.00 265,225.20 actual cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16,654.00 42,336.00 112,000.00 41,804.80 44,906.40 257,701.20 4,284.00 3,240.00 265,225.20 0.00 360 hours 360 hours F G H K L M N P Q R S T A B B CD E 1 Insert formulas and cell references into the "gold" cells below. 2 3 Planned Quantities: 158,400 boxes 1,100 cases Standard Costs Quantity Quantity per case Standard Cost per case Total Quantities for the Total Cost for the Month WERP Muesli Nut per box 1kg 0.12 0.28 1.82 per kg 0.92 per kg 0.99 per kg 1 each 1 each 0.40 kg 0.30 kg 0.30 kg 4 5 Direct Materials: 6 bags for packaging (large) 7 boxes for packaging (large) 8 nuts 9 oats 10 wheat 11 Total Direct Materials 12 Direct Labor 13 Variable Overhead 14 Total Standard Cost 15 16 Actual Production Results: 144 144 57.60 43.20 43.20 Nut $S-FOI 158,400 kg 158,400 kg 63,360 kg 47,520 kg 47,520 kg SS-F11 500g 1kg 17.28 40.32 104.83 39.74 42.77 244.94 materials 4.00 labor 3.00 VOH 251.94 per case 19,008.00 44,352.00 115,315.20 43,718.40 47,044.80 269,438.40 4,400.00 3,300.00 277,138.40 planned cost 20% wheat 30% oat 20% nut 1 box /1 bag 12.00 per hour 9.00 per DLH 0.33 0.33 367 hours 367 DLH minimum 151,200 boxes Standard Quantity [1] 1,050 cases Standard Cost [1] Actual Quantity Standard Cost Variances Price/Spend- Efficiency ing Variances U/F Variances U/E [2], [3], [4] [5], [6], [7] Check Figure Check Figure (Total Variance) (Actual - Std.) Actual Cost 17 18 Direct Materials: 19 bags for packaging (large) 20 boxes for packaging (large) 21 nuts 22 oats 23 wheat 24 Total Direct Materials 25 Direct Labor 26 Variable Overhead 27 Total Standard Cost 28 151,400 each 151,200 each 60,400 kg 45,440 kg 45,360 kg 16,654.00 42,336.00 112,000.00 41,804.80 44,906.40 257,701.20 4,284.00 3,240.00 265,225.20 actual cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16,654.00 42,336.00 112,000.00 41,804.80 44,906.40 257,701.20 4,284.00 3,240.00 265,225.20 0.00 360 hours 360 hours