Question

1 Variance Analysis 2 Insert a formula into each cell containinga? 4 Chatham Company produces a beach towel and incurs the following variable manufacturing costs: Std Qty Std Price/Rate 8 Direct material (cloth) 9 Direct labor 10 Variable D/H [based on direct labor hours) 3 yds 0.75 hours 0.75 hours $ $ 1.80 per yd 12.00 per hour 4.00 per hour 12 Standard Cost per Unit: Std Cost per towel 5.40 9.00 14 Direct Material 15 Direct Lahar 16 Variable D/H 17 Total Std Cost per Unit 17.40 19 Chatham incurred the following variable manufacturing costs in April: 20 Units produced 60D Actual Qty 1920 440 440 23 Direct materials 24 Direct labor 25 Variable O/H 26 Tatal Actual cost yds Actual Price/Rate $1.40 peryd $11.60 per hour $4.90 per hour hours hours Actual Cast $2.688.00 $5,104.00 $2,156.00 $9.949.00 28 Variance Calculations 30 Direct Material Variances 32 Total Spending Variance 33 Standard- 34 S 3,240.00 Actual $2,688.00 Variance 552.00 35 36 Price 37 Difference in price Actual Oy = Variance Sheet1

*Note: Please include the formulas used in excel, for example "=F2*G6"

Thank you so much in advance! Huge help!

Answer 1

Solution: I have included computations in the brackets below the each requirements:

Direct Material Variances Total spending Variance Standard 3,240 $ (600*3yds * $1.80) Actual = 2,688 given Variance 552.00 ($3,240 - 2688) Price Difference in pricex $ ($1.80 - $1.40) 0.40 Actual Qty = 1920 given Variance $ 768.00 (1920*$0.40) Quantity Difference in quantity x 120 (1920 - 600*3yds) Standard Price = $ 1.80 given Variance $ 216.00 (120*$1.80) Direct Labor Variances Spending Standard 5,400 (600*0.75*$12.00) s $ Actual = 5,104 given Variance 296.00 ($ 5400-5104) Rate Difference in price x $ ($12.00-$11.60) 0.40 Actual Qty = 440 (600*0.75) Variance $ 176.00 (440*$0.40) Quantity Difference in quantity x Standard Price = 10 $ 12 (600*0.75 - 440) Variance 120.00 (10*$12) given

Variable O/H Variances Spending Standard $ 1,800 (600*0.75*$4.00) $ Actual = 2,156 given Variance 356.00 ($2,156 - 1800) 15 $4.00) Rate Difference in price x 0.90 ($4.90 - $4.00) Actual Qty = 440 Given Variance $ 396.00 (440*$0.90) Quantity Difference in quantity x Standard Price = 10 $ (600*0.75 -440) Given $ Variance 40.00 (10*$4)