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The Excel worksheet form that appears below is to be used to recreate the main example in the text pertaining to Colonial Pewter Company. Download the workbook containing this form from Con- nect, where 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: Check your worksheet by changing the direct materials standard quantity in cell B6 to 2.9 pounds, the direct labor standard quantity in cell B7 to 0.6 hours, and the variable manufactur- ing 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 work sheet and correct them. 1. What is the materials quantity variance? Explain this variance. What is the labor rate variance? Explain this variance. a. b. 2 Data Exhibit 10-1:Standard Cost Card 3 4 Standard Quantity 3.0 pounds 0.50 hours 0.50 hours 5 Inputs Standard Price $4.00 per pound $22.00 per hour $6.00 per hour 6 Direct materlals 7 Direct labor 8 Variable manufacturing overthead 9 10 Actual results: 11 Actual output 12 Actual variable manufacturing overhead cost 2,000 units $7,140 Actual Quantity 6,500 pounds 1,050 hours 13 Actual price $3.80 per pound $21.60 per hour 14 Actual direct materials cost 15 Actual direct labor cost 16 17 Enter a fomula into each of the cells marked with a 7 below 18 Main Example: Chapter 10 19 20 Exhibit 10-4: 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 6,000 pounds 6,500 pounds 6,500 pounds $4.00 per pound $4.00 per pound $3.80 per pound $24,000 $26,000 $24,700 $2,000 U $1,300 F 700 U Materials spending variance 28 29 Exhibit 10-6: 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 1,000 hours 1,050 hours 1,050 hours $22.00 per hour $22.00 per hour $21.60 per hour $22,000 $23,100 $22,680 Labor efficiency varlance Labor rate variance $1,100 U $420 F $680 U 35 36 Labor spending variance 37 38 Exhibit 10-8: 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: 1,000 hours 1,050 hours 1,050 hoursx $6.00 per hour $6.00 per hour 6.8 per hour $6,000 $6,300 $7,140 Variable overhead efficiency variance Variable overhead rate variance Varlable overhead spending variance 43 $300 U 44 $840 U $1,140 U 45 46 47 48

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