Duo Co. has the following processing standards for its clerical employees:

Number of hours per 1,000 papers processed ........ 150

Normal number of papers processed per year........ 1,500,000

Wage rate per 1,000 papers ............... $1,200

Total standard variable cost (including labor)

of processing 1,500,000 papers .............$2,700,000

Fixed costs per year ................... $ 150,000

The following information pertains to the 1,200,000 papers processed during the year:

Total cost ........$1,995,000

Labor cost .......$1,710,000

Labor hours ........ 190,000

Required

Prepare an Excel spreadsheet that can be used to compute for Duo Co. the following:

1. Expected total cost for the year to process 1,200,000 papers, assuming standard performance.

2. Labor rate variance for the year.

3. Labor efficiency variance for the year.