The Excel worksheet form that follows is to be used to recreate the main example in the text related to the Colonial Pewter Company. Download the workbook containing this from Connect. On the website you will also receive instructions about how to use this worksheet form.

You should proceed to the requirements below only after completing your worksheet.

Required:

1. Check your worksheet by changing the direct materials standard quantity in cell B6 to 2.9 pounds, the direct labor quantity standard quantity in cell B7 to 0.6 hours, and the variable manufacturing overhead in cell B8 to 0.6 hours. The materials spending variance should now be $1,500 U, the labor spending variance should now be $3,720 F, and the variable overhead spending variance should now be $60 F. If you do not get these answers, find the errors in your worksheet and correct them.

a. What is the materials quantity variance? Explain this variance.

b. What is the labor rate variance? Explain this variance.

2. Revise the data in your worksheet to reflect the results for the subsequent period:

a. What is the materials quantity variance? What is the materials price variance?
b. What is the labor efficiency variance? What is the labor rate variance?
c. What is the variable overhead efficiency variance? What is the variable overhead rate variance?

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1 Chapter 11: Applying Excel 2 3 Data 4 Exhibit 11-1 : Standard Cost Card Inputs Standard Quantity Standard Price $4.00 per pound $22.00 per hour $6.00 per hour 6 Dircot matcrials 7 Direct labor 3.0 poundo 0.50 hours 0.50 hours Variable manufacturing overhead 10 Actual results 11 Actual output 12 Actual variable manufacturing overhead cost 13 14 Actual direct materials cost 15 Actual direct labor cost 16 17 Enter a formula into each of the cells marked with a ? below 18 Main Example: Chapter 11 19 20 Exhibit 11-4: Standard Cost Variance Analysis-Direct Materials 21 Standard Quantity Allowed for the Actual Output, at Standard Price 22 Actual Quantity of Input, at Standard Price 23 Actual Quantity of Input, at Actual Price 24 Direct materials variances 25 Materials quantity variance 26 Materials price variance 27 Materials spending variance 28 29 Exhibit 11.6: Standard Cost Variance Analysis-Direct Labor 30 Standard Hours Allowed for the Actual Output, at Standard Rate 31 Actual Hours of Input, at Standard Rate 32 Actual Hours of Input, at Actual Rate 33 Direct labor variances 34 Labor efficiency variance 35 Labor rate variance 36 Labor spending variance 37 38 Exhibit 11-8: Standard Cost Variance Analysis-Variable Manufacturing Overhead 39 Standard Hours Allowed for the Actual Output, at Standard Rate 40 Actual Hours of Input, at Standard Rate 41 Actual Hours of Input, at Actual Rate 42 Variable overhead variances 43 Variable overhead efficiency variance 44 Variable averhead rate variance 45 46 14**-bl | Chapter 11 Form. Filledin Chapter 11Form / Chapter 11Formulas a-7 11 2,000 units S7.140 Actual Quantity Actual price 6,500 pounds $3.80 per pound 1.050 hours 21.60 per hour ? pounds x ? pounds ? per pound- ? per pound ? per pound pounds x ? hours x ? hours x ? hours x ? per houra per hour per hour ? hours x ? hours x ? hours x per hour- per hour per hour Variable overhead spending vanance Data Exhibit 11-1: Standard Cost Card Inputs Standard Quantity 3.0 pounds 0.50 hours 0.50 hours Standard Price $4.00 per pound $22.00 per hour $6.00 per hour Actual results 2,100 unlts $5,100 Actual varlable manufacturing overhead cost. .. Actual Quantity 6,350 pounds 1,020 hours Actual Price $4.10 per pound $22.10 per hour