excel week 5

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Problem

Accelerator, Inc., manufactures a fuel additive, Stomp, that has a stable selling price of $44 per drum.
The company has been producing and selling 80,000 drums per month.
In connection with your examination of Accelerator's financial statement for the year ended September 30, management has asked you to review some
computations made by Accelerator's cost accountant. Your working papers disclose the following about the company's operations.
Standard costs per drum of product manufactured:
Materials:
8 gallons of Stomp @ $2 per gallon $16
1 empty drum @ $1 per drum 1 $17
Direct Labor: 1 hour @ $8 per hour $8
Factory Overhead $6
Costs and expenses during September:
Stomp: 600,000 gallons purchased at a cost of $1,140,000; 645,000 gallons used.
Empty drums: 94,000 purchased at a cost of $94,000; 80,000 used.
Direct labor: 81,000 hours worked at a cost of $654,480.
Factory overhead: $768,000.
Requirements:
Calculate the materials quantity variance, materials price variance (determined at time of purchase); labor efficiency variance and labor rate variance.
Standard Quantity or Hours Actual Quantity or Hours Difference Standard Cost Variance
1. Materials quantity variance:
Surge gal. gal.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N) 		/gal.
Empty drums drm. drm.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)		 drm.
3. Labor efficiency variance hrs. hrs.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N) 		/hr.
Standard Cost Actual Cost Difference Actual Quantity or Hours Variance
2. Materials purchase price variance:
Surge /gal.
Nagaraj: Round answer to 2 decimal places.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)
Himanshu: Indicate favorable (F), unfavorable (U) variance, or none (N)		 /gal.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N) 		gal.
Empty drums drm. drm.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)		 drm.
4. Labor rate variance /hr. /hr.
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)
Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)		 hrs.

Brenda Bindschatel: Indicate favorable (F), unfavorable (U) variance, or none (N)