REQUIRED: All yellow cells in this template (right) must be completed with formulas referencing other cells. For example, do not just type the number $840,000 in cell F9. Instead, you must enter the formula in the cell to calculate this number. Indicate whether variances are favorable (FAV) or unfavorable (UNF) in the "green" cells beside each amount. Some formulas will reference the problem; other formulas will use cells in the template. Variances should not have a minus sign or parentheses. 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 29,500 Actual cost of materials purchased 840,000 28.475 per yd Actual number of yards used in production 27,350 Actual number of costumes produced 2,400 Actual direct labor hours 131.500 Actual direct labor cost 5,600,000 42.586 per hr Actual variable MOH (in total) 665,000 Actual fixed MOH (in total) 1,488,000 12.50 yards 26.5 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 44.5 average 4.5 per D.L. hour 9.164 per D.L. hour 1,250,000 Templates Direct Materials Actual Input Quantity x Budgeted (Std) Price Actual Cost Example: 840,000 Flexible Budget (Applied) Purchases Usage Price Variance Efficiency Variance NOTE: There is NO "total" variance because Price & Efficiency Variances are measured at different times for DM. Direct Labor Actual Actual Input Quantity Flexible x Budgeted (Std) Rate Budget (Applied) Cost Price Variance Efficiency Variance Flexible Budget (TOTAL) Variance Variable Manufacturing Overhead Actual Input Quantity x Budgeted (Std) Rate Actual Cost Incurred Flexible Budget (Applied) Allocated Spending Variance Efficiency Varience Flexible Budget (TOTA) Variance Fixed Manufacturing Overhead Actual Cost Incurred Flexible Budget (Same as Static) Static FOH Budget Allocated Spending Variance Production Volume Variance TOTAL Fixed OH Variance