The primary purpose of this assignment is to give you practice calculating and explaining variances. Thevariances you need to calculate are described under the "requirements" heading below The secondary purpose of this assignment is to improve your proficiency in using Excel as a tool for analysis (as opposed to a word processor). All yellow areas should contain formulas referencing other cells, i.e, don't simply type the number $661,254 in cell E6. Rather, enter the formula to calculate this number. Indicate whether variances are favorable (F) or unfavorable (U). Actual Input Quantity x Budgeted Price Actual Flexible Price Variance Effieieney Varicance Paterson Awning manufactures awningsand uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standatds data: Actual Cost Actual Input Quantity x Budgeted Price Flexible Direct Materials Yards per awning 22.00 13.00 Price per yard Direct Labor 5.00 15.00 Hours per awning Price Variance Efficieney Variance Rate per hour Variable MOH standard rate per direct labor hour Fixed MOH standard rate per direct labor hour Total budgeted fixed MOH cost 6.00 Flexible Budget Variance S 63,500 Actual Input Quantity x Budgeted Price Flexible Actual cost and data from the current month: Number of yards purchased Cost of yards purchased Number of yards used Number of awnings produced Actual direct labor hours Actual direct labor cost Actual variable MOH Actual fixed MOH Cost Allocated 31,260 S 661,254 47,500 2.200 10,850 S 168,175 Spending Variance Efficieney Varience 3,310 67,500 Flexible Budget Variance