Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell D21 enter the formula "= D6".

Notes:
- In the text, variances are always displayed as positive numbers. To accomplish this, you can use the ABS() function in Excel. For example, the formula in cell B25 would be "=ABS(F21−F22)".
- Cells C25 through C27, C34 through C36, and C43 through C45 already contain formulas to compute and display whether variances are Favorable or Unfavorable. Do not enter data or formulas into those cells—if you do, you will overwrite these formulas.

After entering formulas in all of the cells that contained question marks, verify that the amounts match the numbers in the example in the text.

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.

**Chapter 10: Applying Excel**

**Data**

**Exhibit 10-1: Standard Cost Card**

| Inputs | Standard Quantity | Standard Price |
|-----------------------------|-------------------|----------------|
| Direct materials | 3.0 pounds | $4.00 per pound|
| Direct labor | 0.50 hours | $22.00 per hour|
| Variable manufacturing overhead | 0.50 hours | $6.00 per hour |

**Actual results:**

| | |
|--------------------------|-----------------------|
| Actual output | 2,000 units |
| Actual variable manufacturing overhead cost | $7,140 |

| Actual Quantity | Actual price |
|--------------------------|-----------------------|
| Actual direct materials cost | 6,500 pounds | $3.80 per pound |
| Actual direct labor cost | 1,050 hours | $21.60 per hour |

Enter a formula into each of the cells marked with a ? below:

**Main Example: Chapter 10**

**Exhibit 10-4: Standard Cost Variance Analysis–Direct Materials**

| Description | Formula |
|-------------------------------------------------------|----------------------------------------|
| Standard Quantity Allowed for the Actual Output, at Standard Price | ? pounds × ? per pound = ? |
| Actual Quantity of Input, at Standard Price | ? pounds × ? per pound = ? |
| Actual Quantity of Input, at Actual Price | ? pounds × ? per pound = ? |

**Direct materials variances:**

| Description | Formula |
|---------------------------------|---------|
| Materials quantity variance | ? |
| Materials price variance | ? |
| Materials spending variance | ? |

**Exhibit 10-6: Standard Cost Variance Analysis–Direct Labor**

| Description | Formula |
|--------------------------------------------------|------------------------------------|
| Standard Hours Allowed for the Actual Output, at Standard Rate | ? hours × ? per hour = ? |
| Actual Hours of Input, at Standard Rate | ? hours × ? per hour = ? |
| Actual Hours of Input, at Actual Rate | ? hours × ? per hour = ? |

**Direct labor variances:**

| Description | Formula |
|--------------------------------|---------|
| Labor efficiency variance | ? |
| Labor rate variance | ? |
| Labor spending variance | ? |

**Exhibit 10-8: Standard Cost Variance Analysis–Variable Manufacturing Overhead**

| Description | Formula |
|--------------------------------------------------|------------------------------------|
| Standard Hours Allowed for the Actual Output, at Standard Rate | ? hours × ? per hour = ? |
| Actual Hours of Input, at Standard Rate | ? hours × ? per hour = ? |
| Actual Hours of Input, at Actual Rate | ? hours × ? per hour = ? |

**Variable overhead variances:**

| Description | Formula |
|----------------------------------------|---------|
| Variable overhead efficiency variance | ? |
| Variable overhead rate variance | ? |
| Variable overhead spending variance | ? |