Lobo Co is evaluating its recent performance by comparing current results to the budget. They request your assistance in calculating both direct material and labor variances, providing you with standard and actual cost data.

Here is the standard cost information:

Standard Cost per DMHour Standard QtyHrs per Unit Standard Cost per Unit

Direct Materials $ $

Direct Labor $ $

Variable Overhead $ $

Planned production units

Actual cost information is below:

Units Produced

Materials Purchased and Used

Cost of Direct Materials $

Direct Labor Hours

Direct Labor Cost $

Variable Overhead Cost $

Fixed Overhead Cost $

PART #: Direct Material Variances

Calculate the Materials Price, Quantity, and Spending Variance.

Remember, with variances we don\'t care about the sign of the number we care about the interpretation of the variance. Use the ABS function to calculate the absolute value of variance amounts in the green cells and use an IF function in the orange cells to determine the favorability U or F of the variances Remember to cell reference everything!

Direct Materials Variances

Actual times Actual Actual times Standard Standard times Standard

AQ AP AQ SP SQ SP

PART #: Direct Labor Variances

Calculate the Direct Labor Rate, Efficiency, and Spending Variance.

Use the ABS function to calculate the absolute value of variance amounts in the green cells and use an IF function in the orange cells to determine the favorability U or F of the variances Remember to cell reference everything!

Direct Labor Variances

Actual times Actual Actual times Standard Standard times Standard

AH AR AH SR SH SR

Labor Rate Variance Labor Efficiency Variance

Labor Spending Variance