Complete the spreadsheet found in the Variance Analysis Dropbox by inserting formulas or cell references in all the cells that contain question marks. Battle Company produces leather belts and initially the actual number of belts produced is 40 (cell B20). After you input your formulas and calculate your variances, the direct material quantity variance should be $72 unfavorable and the variable overhead efficiency variance should be $33 - unfavorable. A variance cell that is highlighted in green will indicate a favorable variance and a variance cell that is highlighted in red will indicate an unfavorable variance.

Check the accuracy of the formulas in your spreadsheet by decreasing the actual number of belts produced (cell B20) from 40 to 36. Your spreadsheet should automatically recalculate the variances. The new direct material quantity variance should be $108 unfavorable and the new variable overhead efficiency variance should be $132 - unfavorable. If your spreadsheet doesnt calculate the new variances correctly, fix the errors in your formulas before you submit it. I will check your spreadsheet by changing the number of belts produced and checking to see if your spreadsheet recalculates the variances correctly. Upload either version of your completed spreadsheet to the Variance Analysis Dropbox. Please let me know if you have a question.

Battle Co. produces a men's leather belt which incurs the following variable production costs:
Leather Belt			Std Qty per belt
Direct Material (leather)			0.75	yards
Direct Labor			1.5	hours
Variable O/H (based on direct labor hours)			1.5	hours
Standard Cost per Unit:
	Standard Cost
Direct Material	?
Direct Labor	?
Variable O/H	?
Total Std Cost per Unit	?
Battle incurred the following variable production costs in August:
Units produced	40	belts
	Actual Qty		Actual Price/Rate
Direct Material	36	yards	$12.30	per yard
Direct labor	62	hours	$20.50	per hour
Variable O/H	62	hours	$17.00	per hour
Total Actual cost