Functions: IF: Formula: Multiply. Add. Subtract: Cell Referencing E6.13 - Using Excel to Calculate Variances PROBLEM The following information is available for Coady's Chocolates: Student Vork Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem or work area as indicated. Use the IF function to denote if each variance is Favorable or Unfavorable. 3,400 3,000 a. Actual production, boxes Budgeted production, boxes Direct materials standards Pounds of chocolate per box Cost per pound Actual direct materials Pounds of chocolate purchase Pounds of chocolate used Cost per pound 3 6.00 Calculate the direct materials price and quantity variances. $ AQ x AP AQX SP 9,000 9,500 6.10 Direct Materials Price Variance $ AQX SP SQ X SP Direct Materials Quantity Variance b. What might have caused the variances you calculated? Coady's Chocolates appears to have purchased a higher quality chocolate at a higher price than the standard specified. The higher quality chocolate appears to have been processed better than the standard quality, requiring less chocolate to complete the production run