You should proceed to the requirements below only after completing your worksheet. Required: 1. Check your worksheet by changing the direct materials standard quantity in cell B6 to 2.9 pounds, the direct labor quantity standard quantity in cell B7 to 0.6 hours, and the variable manufacturing overhead in cell B8 to 0.6 hours. The materials spending variance should now be $1,500 U, the labor spending variance should now be $3,720 F, and the variable overhead spending variance should now be $60 F. If you do not get these answers, find the errors in your worksheet and correct them. a. What is the materials quantity variance? Explain this variance. b. What is the labor rate variance? Explain this variance. 2. Revise the data in your worksheet to reflect the results for the subsequent period: Data Exhibit 10?2: Standard Cost Card Inputs Standard Quantity Standard Price Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 pounds $4.00 per pound Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50 hours $22.00 per hour Variable manufacturing overhead . . . . . . . . . . . . . . 0.50 hours $6.00 per hour Actual results: Actual output . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100 units Actual variable manufacturing overhead cost . . . $5,100 Actual Quantity Actual price Actual direct materials cost . . . . . . . . . . . . . . . . . 6,350 pounds $4.10 per pound Actual direct labor cost . . . . . . . . . . . . . . . . . . . . 1,020 hours $22.10 per hour a. What is the materials quantity variance? What is the materials price variance? b. What is the labor efficiency variance? What is the labor rate variance? c. What is the variable overhead efficiency variance? What is the variable overhead rate variance?

qattachments_04899b21b2375d06ec05a91ab138d7b872a8a3da.xls Chapter 10: Applying Excel Data Exhibit 10-2: Standard Cost Card Inputs Direct materials Direct labor Variable manufacturing overhead Actual results: Actual output Actual variable manufacturing overhead cost Actual direct materials cost Actual direct labor cost Standard Quantity 3.0 pounds 0.50 hours 0.50 hours Standard Price $4.00 per pound $22.00 per hour $6.00 per hour 2,000 units $7,140 Actual Quantity 6,500 pounds 1,050 hours Actual price $3.80 per pound $21.60 per hour Enter a formula into each of the cells marked with a ? below Main Example: Chapter 10 Exhibit 10-5: Standard Cost Variance Analysis-Direct Materials Standard Quantity Allowed for the Actual Output, at Standard Price Actual Quantity of Input, at Standard Price Actual Quantity of Input, at Actual Price Direct materials variances: Materials quantity variance Materials price variance Materials spending variance Exhibit 10-6: Standard Cost Variance Analysis-Direct Labor Standard Hours Allowed for the Actual Output, at Standard Rate Actual Hours of Input, at Standard Rate Actual Hours of Input, at Actual Rate Direct labor variances: Labor efficiency variance Labor rate variance Labor spending variance Exhibit 10-7: Standard Cost Variance Analysis-Variable Manufacturing Overhead Standard Hours Allowed for the Actual Output, at Standard Rate Actual Hours of Input, at Standard Rate Actual Hours of Input, at Actual Rate Variable overhead variances: Variable overhead efficiency variance Variable overhead rate variance Variable overhead spending variance ? pounds ? pounds ? pounds ? per pound = ? per pound = ? per pound = ? ? ? ? per hour = ? per hour = ? per hour = ? ? ? ? per hour = ? per hour = ? per hour = ? ? ? ? ? ? ? hours ? hours ? hours ? ? ? ? hours ? hours ? hours