Mack Backpack Company manufactures a variety of backpack models. Each backpack requires a variety of direct materials,
Question:
Mack Backpack Company manufactures a variety of backpack models. Each backpack requires a variety of direct materials, including fabric, buckles, zippers, and other materials.
Company managers have the following investigation rules for direct materials price variances:
• Variances greater than 20% are considered urgent and should be investigated immediately.
• Variances between 5% and 20% should also be investigated.
• Variances less than 5% will not be investigated.
The controller prepared a report using Excel to calculate the direct material price variances and price variance percentages. A sample from that Excel report appears below.
Using the partial Excel report shown, answer the following questions.
1. What steps would be performed in Cell J2 to designate whether the variance percentage would be classified as Urgent, Investigate, or No Action Needed?
2. How could the formula in Cell J2 be copied down to the rest of the rows in that column?
3. What Excel feature was used to visually highlight cells in Column J?
4. Describe how the cells in Column J would have been visually highlighted to show the Urgent, Investigate, and No Action Needed cells with separate colors automatically (rather than individually applying fill colors).
5. How could the Excel worksheet be edited to show only those variances that are greater than \($10,000\)?
Step by Step Answer:
