Applying Excel ACCOUNTING Available with McGraw-Hill\'s Connect Accounting. The

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Applying Excel ACCOUNTING Available with McGraw-Hill's Connect Accounting. The Excel worksheet form that appears on the next page is to be used to recreate the main example in the text on pages 428-442. Download the workbook containing this form from the Online Learning Center at www.mhhe.com/garrison15e. On the website you will also receive instructions about how to use this worksheet fornm LO10-1, LO10-2, LO10-3 Ch 10 Applying Excel Student Form 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. 1 Chapter 10: Applying Excel 3 Data 4 Exhibit 10-1: Standard Cost Card Standard QuantityStandand Price 6 Drect matenala 7 Drect labor 8 Vanable manufacturing 0 pounds $4.00 per pound .50 hours 0.50 hours 22.00 per hour $6.00 per hour 10 Actusl resuts 1 Actual output 12 Actual varisble manufacturing averhead cost 13 4 Actual diract matorials cost 2.000 unite Actual Quanity 050 hours 57,140 Actual price 500 pounds $3.80 par pound Actual direct labor cost 21.60 par hour 10 17 Enter a fomula into each of the cells mariced with a ? below

Explanation / Answer

Preble Company:

1. Raw materials cost to be included in the planning budget for March = 25,000 x $ 40 = $ 1,000,000.

2. Raw materials cost to be included in the flexible budget for March = 30,000 x $ 40 = $ 1,200,000.

3. Materials Price Variance for March = ( Standard price per unit - Actual price per unit ) x Actual Quantity Purchased = $ ( 8.00 - 7.50) x 160,000 = $ 80,000 F.

4. Materials Quantity Variance for March = ( Standard Quantity Allowed - Actual Quantity Used ) x Standard price per unit = ( 5 x 30,000 - 160,000) x $ 8.00 = $ 80,000 U.

5. If Preble had purchased 170,000 pounds in March, Materials Price Variance = $ ( 8.00 - 7.50) x 170,000 = $ 85,000 F.

6. MaterialsQuantity Variance = ( 5 x 30,000 - 160,000) x $ 8.00 = $ 80,000 U.

7. Direct labor cost to be included in the planning budget for March = 25,000 x $ 28.00 = $ 700,000.

8. Direct labor cost to be included in the flexible budget for March = 30,000 x $ 28.00 = $ 840,000.

9. Labor Rate Variance for March = ( Standard Labor Hour Rate - Actual Horly Rate) x Actual Hours Used = $ ( 14.00 - 15.00) x 55,000 = $ 55,000 U.

10. Labor Efficiency Variance for March = ( Standard Hours Allowed - Actual Hours Used) x Standard Labor Hour Rate = ( 2 x 30,000 - 55,000) x $ 14.00 = $ 70,000 F.

11. Labor Spending Variance for March = $ 840,000 - ( 55,000 x $ 15.00) = $ 15,000 F.

12. Variable manufacturing overhead budget to be included in the planning budget for March = 25,000 x $ 10.00 = $ 250,000.

13. Variable manufacturing overhead budget to be included in the flexible budget for March = 30,000 x $ 10.00 = $ 300,000.

14. Variable overhead rate variance for March = $ ( 5.00 - 280,500 / 55,000) x 55,000 = $ 5,500 U.

15. Variable overhead efficiency variance for March = ( 2 x 30,000 - 55,000) x 5.00 = $ 25,000 F.

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