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Excel Project 2-Chapters-5 Help Save & Exit HIA A Paste AAlignment Number Condit

ID: 3199516 • Letter: E

Question

Excel Project 2-Chapters-5 Help Save & Exit HIA A Paste AAlignment Number Conditional Format as Cell CellsEditing 2 Formatting Table Styles Clipboard Font Al Print t materials 2.4 yards @ 3 yards @ $2.75 per yard $2.70 per yard $6.60 4 Standard 5 Actual 6 Direct labor: 7 Standard 8 Actual 9 Variable overhead: 10 Standard 11 Actual 12 13 Total cost per unit $8.10 0.6 hours @ 0.5 hours @ $18.00 per hour $22.00 per hour 10.80 11.00 0.6 hours @ 0.5 hours @ $7.00 per hour $7.10 per hour 4.20 3.55 $21.60 $22.65 $1.05 15 Excess of actual cost over standard cost per unit 16 17 Actual production for the month 18 Variable overhead is assigned to products based on direct labor hours. There 19 was no beginning or ending inventory of materials for the month 20 13,500 units ute the following. Input all numbers as positive amounts. Indicate whether the variances are F or U. Write if statements for variance cells F30 to F47. Use cell references (formulas) for cells D53 D60. Enter an F or U to indicate the correct variance in 5

Explanation / Answer

Standard Cost variance analysis - direct material

standard quantity allowed for actual output at standard price = standard quantity x standard price

= 2.4yrd * $2.75/yrd = $6.60

Actual quantity of input at standard price = Actual quantity x standard price

= 3yrd * $2.75/yrd = $8.25

Actual quantity of input at actual price = actual quantity x actual price

= 3yrd * $2.70/yrd = $8.10

Quantity variance = |actual quantity - standard quantity| = |3yrd-2.4 yrd | = 0.6yrd

Price variance = |actual price - standard price| = |$2.70-$2.75|= $0.05

Standard Cost variance analysis - direct labour

standard hours allowed for actual output at standard rate = standard hours x standard rate

= 0.6 hours* $18/hour = $10.8

Actual hours of input at standard rate = Actual hours x standard rate

= = 0.5 hours* $18/hour = $9

Actual hours of input at actual rate = actual hours x actual rate

= 0.5 hours* $2/hour = $22

hours variance = |actual hours - standard hours| = |0.5 hours - 0.6 hours| = 0.1 hours

Rate variance = |actual rate - standard rate| = $22 - $18 = $4

Standard Cost variance analysis - Variable manufacturing overhead

standard hours allowed for actual output at standard rate = standard hours x standard rate

= 0.6 hours* $7.00/hour = $4.20

Actual hours of input at standard rate = Actual hours x standard rate

= = 0.5 hours* $7.00/hour = $3.50

Actual quantity of input at actual price = actual hours x actual rate

= 0.5 hours* $7.10/hour = $3.55

Variable overhead efficiency variance = |actual hours - standard hours| = |0.5 hours - 0.6 hours| = 0.1 hours

Variable overhead rate variance = |actual rate - standard rate| = |$7.10 - $7.00| = $0.10

Material:

Quantity variance = = 0.6yrds

Price variance = = $0.05

Labour:

hours variance = 0.1 hours

Rate variance = $4

Overhead:

Variable overhead efficiency variance = 0.1 hours

Variable overhead Rate variance = $0.10

Excess of actual over standard cost per unit = (Actual quantity of input at actual price - standard quantity allowed for actual output at standard price ) + (Actual hours of input at actual rate - standard hours allowed for actual output at standard rate ) + (Actual quantity of input at actual price - standard hours allowed for actual output at standard rate) = (8.10-6.60)+(11.00-10.8)+(3.55-4.20) = $1.05