Requirement 2: Revise the data in your worksheet to reflect the results for the

Question

Requirement 2: Revise the data in your worksheet to reflect the results for the subsequent period as shown below: 1 Chapter 8: Applying Excel 2 3 Data 4 Exhlbit 8-8: Standard Cost Card 5 6 Direct materials 7 Direct labor 8 Variable manufacturing overhead Inputs Standard Quantity Standard Price 3.0 pounds 0.50 hours 0.50 hours $4.00 $22.00 per hour $6.00 per hour 10 Actual results: 11 Actual output 12 Actual variable manufacturing overhead cost 13 14 Actual direct materials cost 15 Actual direct labor cost 1,900 units $5,143 Actual Quantity 5,585 pounds 935 hours Actual price $3.8 pounds S21.7 per hour a-1. What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)) The amount of the materials quantity variance

Explanation / Answer

Part A - 1

Materials quantity variance = SP * (AQ-SQ) = 4* (5585-(1900*3)) = 4*(5585-5700) =-460 = 460 F

Part A - 2

Materials price variance = AQ * (AP-SP) = 5585*(3.80 - 3.00) = 4468U

Part B - 1

Labor efficiency variance = SR *(AH - SH) = 22*(935 - (1900*0.5)) = 22*(935-950) = -330 = 330F

Part B - 2

Labor rate variance = AH * (AR - SR) = 935*(21.70 - 22.00) = -280.50 = 280.50 F = 281 F

Part C-1

Variable overhead efficiency variance = SR * (AH - SH) = 6*(935-(1900*0.50)) = 6*(935-950) = - 90 = 90 F

Part C-2

Variable overhead rate variance = AH * (AR - SR) = 935*((5413/935) - 6) =-197 = 197 F

The amount of materials quantity variance $ 460 F

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