**Using Excel to Calculate Direct Labor Variances****Problem:**Rob, the production manager, was pleased at the company’s income statement results, even though actual sales volume came in below original projections. Information concerning the budgeted and actual amounts for direct labor are provided here:- Actual direct labor cost: $55,000- Budgeted direct labor cost: $63,000- Actual direct labor hours used: 2,500- Actual units produced and sold: 1,200- Units below budget for sales volume: 200- Budgeted direct labor hours per unit: 2- Budgeted direct labor rate per hour: $22.50**Student Work Area:****Requirements:** Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated.**Task:** Calculate the company’s Direct Labor (DL) price and DL efficiency variances.**Columns:**- Actual- Unnamed- Flexible Budget **Instructions:**Input the necessary data in the shaded yellow cells to determine the direct labor variances. Use Excel formulas for accurate calculations and reflect on the differences between the actual, unnamed, and flexible budget columns to understand variances in labor costs effectively.

Name: **Using Excel to Calculate Direct Labor Variances****Problem:**Rob, t
Uploaded: 2024-03-20T06:33:06.000Z
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Description: **Using Excel to Calculate Direct Labor Variances****Problem:**Rob, the production manager, was pleased at the company’s income statement results, even though actual sales volume came in below original projections. Information concerning the budgete

DIRECT LABOUR VARIANCE Direct labour cost variance is the difference between the standard cost for actual production and the actual cost in production. Direct Labour Price Variance is Computed :— DL Price Variance = Actual Hour (SR - AR) Direct Labour Efficiency Variance is Computed :— DL efficiency Variance = SR (Standard Hour - Actual Hour)Working Note #1 :— Computation of Actual Direct Labour rate Per Hour. Rate Per Hour = Actual Direct Labour Cost ÷ Actual Direct Labour Hour used. Actual DL Rate Per Hour = $55,000 ÷ 2,500 Hrs Actual DL Rate Per Hour = $22 Per Hour Working Note #2 :— Computation of Standard input of Direct Labour (Standard Hour) SI of DL = Budgeted Direct Labour Hour Per Unit * Actual Output Standard Input of DL = 2 hr per Unit * 1,200 Unit Standard Input of DL = 2,400 Hours Requirement #1 :— Computation of Direct Labour Price Variance DL Price Variance = Actual Hour (SR - AR) DL Price Variance = 2,500 hrs ($22.50 - $22) DL Price Variance = $1,250 Favourable Requirement #2 :— Computation of Direct Labour Efficiency Variance DL efficiency Variance = SR (Standard Hour - Actual Hour) DL efficiency Variance = $22.50 (2,400hrs - 2,500 hrs) DL efficiency Variance = $2,250 Unfavorable

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Accounting

BE10.8-Using Excel to Calculate Direct Labor Variances PROBLEM Rob, the production manager, was pleased at the company's income statement results, even though actual sales volume came in below. original projections. Information concerning the budgeted and 3 actual amounts for direct labor are provided here. 3 _0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Actual direct labor cost Budgeted direct labor cost Actual direct labor hours used Actual units produced and sold Units below budget for sales volume Budgeted direct labor hours per unit Budgeted direct labor rate per hour $ 55,000 $ 63,000 2,500 1,200 200 $ 2 22.50 Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Calculate the company's DL price and DL efficiency variances. Actual Unnamed Flexible Budget