1. Compute the direct material, direct labor and variable overhead variances. Complete the following table comparing actual costs to the flexible budget and master budget. Use formulas for the spending and volume variances so that variance will appear as a negative number if unfavorable and a positive number if favorable. Note: Use cell A2 to A15 from the given information to complete this question. Direct materials: Direct labor: Variable overhead: Direct materials: Price Variance = AQ* (SP-AP) Quantity Variance SP (SQ-AQ) Total Spending Variance Direct Labor Rate Variance =AH (SR-AR) Using the formulas provided, compute the following variances. Write if statements to enter an For U to indicate whether the variance is favorable or unfavorable. Note: Use cell AZ to A15 from the given information to complete this question. Efficiency Variance = SR (SH-AH) Total Spending Variance Variable Overhead Actual Costs $245,700 $129,938 $89,100 Rate Variance = AH*(SR-AR) Efficiency Variance SR (SHAH) Total Spending Variance Spending Variances Variance For U Flexible Budget Volume Variances Master Budget Direct materials: Direct labor: Variable overhead (based on labor hours): Budgeted production for the month Actual production for the month Actual Costs Incurred to Produce 13,500 units: Direct Materials Purchased and Used Direct Labor Paid Variable Overhead Incurred Standard Quantity 2.5 yards @ 0.5 hours @ 0.5 hours @ 14,000 units 13,500 units Standard Quantity 35,100 yards @ 7,425 hours 7,425 hours @ Standard Price/Rate $8.00 per yard $18.00 per hour $10.00 per hour Standard Price/Rate $7.00 per yard $17.50 per hour $12.00 per hour Standard Unit Cost $20.00 9.00 5.00 Total Actual Cost $245,700 $129,938 $89,100 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3