1. Compute the direct material, direct labor and variable overhead variances.I am struggling with this chapter so a tiny explanation for each answer would be appreciated. P.S. the answers have to be in terms of Excel Formulas. Thanks!

X ? X H 5 FILE 5 HOME Basic variance analysis for direct materials, direct labor and variable overhead - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW - Sign In Paste B I U - - - A Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font c19 1 The standard cost card for a single unit of Robinson, Inc.'s products is shown below. 4 Direct materials: Direct labor: 6 Variable overhead (based on labor hours): Standard Quantity 2.5 yards @ 0.5 hours @ 0.5 hours @ Standard Price/Rate $8.00 per yard $18.00 per hour $10.00 per hour Standard Unit Cost $20.00 9.00 5.00 8 Budgeted production for the month 9 Actual production for the month 14,000 units 13,500 units 11 Actual Costs Incurred to Produce 13,500 units: 12 Direct Materials Purchased and Used 13 Direct Labor Paid 14 Variable Overhead Incurred 35,100 yards @ 7,425 hours @ 7,425 hours @ $7.00 per yard $17.50 per hour $12.00 per hour Total Actual Cost $245,700 $129,938 $89,100 16 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. 17 18 Spending Variances Flexible Budget Volume Variances Master Budget 19 Direct materials: 20 Direct labor: ... Sheet1 Actual Costs $245,700 $129,938 ... + READY U 0 - + 100% Attemntia 3/2 x) 5 ? - X - Basic variance analysis for direct materials, direct labor and variable overhead - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME Sign In - Connections ALZA E Properties 71 Sort From From Access Web Clear Reapply Advanced Existing Connections From From Other Text Sources Get External Data Filter Outline Refresh All Edit Links Connections Data Tools Sort & Filter C19 A 19 Direct materials: 20 Direct labor: 21 Variable overhead: $245,700 $129,938 $89,100 24 Using the formulas provided, compute the following variances. 25 Write if statements to enter an For U to indicate whether the variance is favorable or unfavorable. Variance For U 27 Direct materials: 28 Price Variance = AQ* (SP-AP) 29 Quantity Variance = SP * (SQ-AQ) 30 Total Spending Variance 31 Direct Labor 32 Rate Variance = AH * (SR - AR) Efficiency Variance = SR* (SH - AH) Total Spending Variance 35 Variable Overhead 36 Rate Variance = AH * (SR-AR) Efficiency Variance = SR* (SH - AH) Total Spending Variance ... Sheet1 ... + 0 0 - + READY Attempt(s) 100% Hint 3/3