You are a new junior accountant at Perfect View Corporation, maker of lenses for eyeglasses. Your company sells generic-quality lenses for a moderate price. Your boss, the controller, has given you the latest month's report for the lens trade association. This report includes information related to operations for your firm and three of your competitors within the trade association. The report also includes information related to the industry benchmark for each line item in the report. You do not know which firm is which, except that you know you are firm A. Requirements1. Calculate the total variable cost per unit for each firm in the trade association.Compute the percent of total for the material, labor, and variable overheadcomponents.2. Using the trade association's industry benchmark, calculate direct materialsand direct manufacturing labor price and efficiency variances for the four firms.Calculate the percent over standard for each firm and each variance. Unit Variable Costs - Member FirmsFor the Month Ended September 30, 2017Firm AFirm BFirm CFirm DIndustry BenchmarkMaterials input2.101.951.902.502.10 oz. of glassMaterials price$5.30 $5.80 $5.40 $5.05 $5.40 per oz.Labor-hours used0.750.650.650.600.60 hoursWage rate$ 15.00 $ 14.75 $ 14.50 $16.25 $13.00 per DLHVariable overhead rate8.75 $13.50 $7.00 $10.50 $11.75 per DLH

The expenses that change in relation to total production during a specific time period are referred…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are a new junior accountant at Perfect View Corporation, maker of lenses for eyeglasses. Your company sells generic-quality lenses for a moderate price. Your boss, the controller, has given you the latest month's report for the lens trade association. This report includes information related to operations for your firm and three of your competitors within the trade association. The report also includes information related to the industry benchmark for each line item in the report. You do not know which firm is which, except that you know you are firm A.