ACCT $3221-$ CHAPTERS $788$ EXCEL PROJECT INSTRUCTIONS Pickwick Company planned to purchase and use $500,000$ pounds of material to manufacture and sell $50,000$ units, which, according to the budget, would produce operating income of $$400,000$ this period. Pickwick did, in fact, actually purchase and use $500,000$ pounds of material, but they actually manufactured and sold only $45,000$ units, and earned operating income of only $$20,000$ this period. Top management would like to better understand why this drastic drop in income occurred. Budgeted and actual income are as follows: Variable overhead is allocated on the basis of direct labor cost. Production standards call for $7$ labor hours per unit, paid at $$10\mathrm{.}00$ per hour. Pickwick actually used $337,500$ direct labor hours. REQUIRED: Prepare a comprehensive variance analysis report for Pickwick. Use the absolute value function $($ABS$)$ to calculate variances. Then use the IF function to decide whether a variance is Favorable or Unfavorable and the SUMIF function to decide whether the variance reconciles the difference between the static budget income and the actual income. The only data inputs should be entered into an "INPUT" area, and all other cells require formulas only. You will lose points if you enter data into cells in areas other than the "INPUT" area. When you have completed the variance report, answer the following questions $($use specific numbers if they are given or can be calculated$).$ Comment on Direct Material Variances, and explain what is causing the F$//$U Variances. Comment on Direct Labor Variances, and explain what is causing the F$//$U Variances. Comment on Variable Overhead Variances, and explain what is causing the F$/$U Variances. Comment on All Variances in total, and how the variances affect net income for Pickwick. Submit your completed Excel Workbook template to Canvas using the assignment upload folder. Be sure to submit your assignment by noon on Apr. $8,$ as no late assignments will be allowed.

I have numbers, but I want to see what you will do and what we did differently.