Using Excel to Determine Overhead Variances

PROBLEM

5 In October, Pine Company was determining its overhead variance. Its

predetermined overhead rate is based on direct labor hours. The following

7 information was provided.

Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use cell

references to the Problem area with mathematical formulas in the input cells.

In the last input field, input an IF function with cell references to your work

area.

10

15

17

21

Manufacturing overhead costs incurred

Actual direct labor hours

Standard hours allowed for work done

Predetermined overhead rate

S

118,000

21.000

20.600

6.00

Compute the amount of the total overhead variance and designate if the

variance is favorable or unfavorable using Excels IF function.

Actual overhead

Overhead applied

Total overhead variance

Nature of variance

In October, Pine Company was determining ts overheed variance. Its predotermined overhead rate is based on direct labor hours. The following ifoemation was provided. Required: Provide in put into cells shaded in yellow in this template. Use cel references to the Problem area with mathematical formulas in the input cell In the last inpout field, input an IF function with cell reforences to your work ares. Compute the amount of the total overhead variance and designate it the variance is favorable or untavorabla using Excels IF function