# Excel Applications for Accounting Principles

## Quiz 24 :Material and Labor Variances Primevar

Question Type
PROBLEM DATA McGrade Industries manufactures a product whose standard direct materials and direct labor unit costs are as follows: REQUIREMENT What is the total actual cost of October's production Based on the standards, what should it have cost Compute the total difference (variance) between these two amounts.
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Essay

Review the worksheet indicated in the problem. Review the problem data. Based on the data, calculate the actual cost, standard cost, and the difference for direct materials and direct labor. To do this, you will need to multiply standard rates for materials and labor by the actual number of units produced.
Once you have made all the calculations, you should have this information:

Tags
PROBLEM DATA McGrade Industries manufactures a product whose standard direct materials and direct labor unit costs are as follows: REQUIREMENT The president of McGrade Industries wants an analysis prepared to help explain why the variances computed in requirement 1 occurred. Using the worksheet called PRIMEVAR that follows these requirements, calculate the material and labor variances for McGrade Industries. The problem requires you to enter the input in the Data Section as well as formulas in the Answer Section.
Free
Essay

Review the worksheet indicated. Input your data where indicated in the worksheet using your calculations from the given data. When you finish the data section, your worksheet should look like this:

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PROBLEM DATA McGrade Industries manufactures a product whose standard direct materials and direct labor unit costs are as follows: REQUIREMENT Open the file PRIMEVAR from the website for this book at cengagebrain.com. Enter the input values or formulas to compute the input values. Then enter the formulas where indicated on the worksheet. As a hint, FORMULA1 can be written as =(D8-D9)*D12. Formulas 8-10 should enter an F if the variance is favorable and a U if it is unfavorable. See the discussion of the =IF function in Appendix A of Excel Quick. Enter your name in cell A1. Save the completed file as PRIMEVAR3. Print the worksheet when done. Also print your formulas. Check figure: Material quantity variance (cell B27), \$24,000 U.
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Essay