Use Excel formulas and links to cells in order to answer the following questions. 1. Given the
Question:
Use Excel formulas and links to cells in order to answer the following questions.
1. Given the actual level of activity (number of cases of Nut muesli produced), what are the standard costs? In other words, what would be the costs shown in Muesli AG’s flexible budget for Nut muesli?
2. Calculate the material price variances for all the components that go into a box of Nut muesli. (We are concerned only with production variances at this point.) Place your calculations in the column titled “Price/Spending Variances”.
a. Indicate whether the variance is unfavorable or favorable.
3. Calculate the labor rate variance.
a. Indicate whether the variance is unfavorable or favorable.
4. Calculate the variable overhead rate variance.
a. Indicate whether the variance is unfavorable or favorable.
5. Calculate the materials quantity variances for each of the components that go into a box of Nut muesli. Place your calculations in the column title “Efficiency Variances”.
a. Indicate whether the variance is unfavorable or favorable.
6. Calculate the labor efficiency variance.
a. Indicate whether the variance is unfavorable or favorable.
7. Calculate the variable overhead efficiency variance.
a. Indicate whether the variance is unfavorable or favorable.
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk