Total variable cost and percentage of each cost to total variable cost per unit of each member firm of the trade union for September 2014. Given information: Firm A Actual material used is 2.15 oz. per glass. Actual material price is $5.00 per oz. Actual labor hours used is 0.75 hours. Actual wage rate is $14.50 per hour. Per DLH Actual variable overheads are $9.25 per DLH. Firm B Actual material used is 2.00 oz. per glass. Actual material price is $5.25 per oz. Actual labor hours used is 1:00 hours. Actual wage rate is $14.00 per hour. Per DLH Actual variable overheads are $14.00 per DLH. Firm C Actual material used is 2.20 oz. per glass. Actual material price is $5.10 per oz. Actual labor hours used is 0.65 hours. Actual wage rate is $14.25 per hour. Per DLH Actual variable overheads are $7.75 per DLH. Firm D Actual material used is 2.60 oz. per glass. Actual material price is $4.50 per oz. Actual labor hours used is 0.70 hours. Actual wage rate is $15.25 per hour. Per DLH Actual variable overheads are $11.75 per DLH. Industry’s Standard Standard material used is 2.15 oz. per glass. Standard material price is $5.10 per oz. Standard labor hours used is 0.70 hours. Standard wage rate is $12.50 per hour. Per DLH Standard variable overheads are $12.25 per DLH.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.38P

1.

To determine

Total variable cost and percentage of each cost to total variable cost per unit of each member firm of the trade union for September 2014.

Given information:

Firm A

Actual material used is 2.15 oz. per glass.

Actual material price is $5.00 per oz.

Actual labor hours used is 0.75 hours.

Actual wage rate is $14.50 per hour. Per DLH

Actual variable overheads are $9.25 per DLH.

Firm B

Actual material used is 2.00 oz. per glass.

Actual material price is $5.25 per oz.

Actual labor hours used is 1:00 hours.

Actual wage rate is $14.00 per hour. Per DLH

Actual variable overheads are $14.00 per DLH.

Firm C

Actual material used is 2.20 oz. per glass.

Actual material price is $5.10 per oz.

Actual labor hours used is 0.65 hours.

Actual wage rate is $14.25 per hour. Per DLH

Actual variable overheads are $7.75 per DLH.

Firm D

Actual material used is 2.60 oz. per glass.

Actual material price is $4.50 per oz.

Actual labor hours used is 0.70 hours.

Actual wage rate is $15.25 per hour. Per DLH

Actual variable overheads are $11.75 per DLH.

Industry’s Standard

Standard material used is 2.15 oz. per glass.

Standard material price is $5.10 per oz.

Standard labor hours used is 0.70 hours.

Standard wage rate is $12.50 per hour. Per DLH

Standard variable overheads are $12.25 per DLH.

2.

To determine

Price and efficiency variance of direct material and direct manufacturing labor and their percentage over industry benchmark.

3.

To determine

Advantages and disadvantages of using industry’s standard as benchmark.

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Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.38P

1.

To determine

Total variable cost and percentage of each cost to total variable cost per unit of each member firm of the trade union for September 2014.

Given information:

Firm A

Actual material used is 2.15 oz. per glass.

Actual material price is $5.00 per oz.

Actual labor hours used is 0.75 hours.

Actual wage rate is $14.50 per hour. Per DLH

Actual variable overheads are $9.25 per DLH.

Firm B

Actual material used is 2.00 oz. per glass.

Actual material price is $5.25 per oz.

Actual labor hours used is 1:00 hours.

Actual wage rate is $14.00 per hour. Per DLH

Actual variable overheads are $14.00 per DLH.

Firm C

Actual material used is 2.20 oz. per glass.

Actual material price is $5.10 per oz.

Actual labor hours used is 0.65 hours.

Actual wage rate is $14.25 per hour. Per DLH

Actual variable overheads are $7.75 per DLH.

Firm D

Actual material used is 2.60 oz. per glass.

Actual material price is $4.50 per oz.

Actual labor hours used is 0.70 hours.

Actual wage rate is $15.25 per hour. Per DLH

Actual variable overheads are $11.75 per DLH.

Industry’s Standard

Standard material used is 2.15 oz. per glass.

Standard material price is $5.10 per oz.

Standard labor hours used is 0.70 hours.

Standard wage rate is $12.50 per hour. Per DLH

Standard variable overheads are $12.25 per DLH.

2.

To determine

Price and efficiency variance of direct material and direct manufacturing labor and their percentage over industry benchmark.

3.

To determine

Advantages and disadvantages of using industry’s standard as benchmark.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.38P

1.

To determine

Total variable cost and percentage of each cost to total variable cost per unit of each member firm of the trade union for September 2014.

Given information:

Firm A

Actual material used is 2.15 oz. per glass.

Actual material price is $5.00 per oz.

Actual labor hours used is 0.75 hours.

Actual wage rate is $14.50 per hour. Per DLH

Actual variable overheads are $9.25 per DLH.

Firm B

Actual material used is 2.00 oz. per glass.

Actual material price is $5.25 per oz.

Actual labor hours used is 1:00 hours.

Actual wage rate is $14.00 per hour. Per DLH

Actual variable overheads are $14.00 per DLH.

Firm C

Actual material used is 2.20 oz. per glass.

Actual material price is $5.10 per oz.

Actual labor hours used is 0.65 hours.

Actual wage rate is $14.25 per hour. Per DLH

Actual variable overheads are $7.75 per DLH.

Firm D

Actual material used is 2.60 oz. per glass.

Actual material price is $4.50 per oz.

Actual labor hours used is 0.70 hours.

Actual wage rate is $15.25 per hour. Per DLH

Actual variable overheads are $11.75 per DLH.

Industry’s Standard

Standard material used is 2.15 oz. per glass.

Standard material price is $5.10 per oz.

Standard labor hours used is 0.70 hours.

Standard wage rate is $12.50 per hour. Per DLH

Standard variable overheads are $12.25 per DLH.

2.

To determine

Price and efficiency variance of direct material and direct manufacturing labor and their percentage over industry benchmark.

3.

To determine

Advantages and disadvantages of using industry’s standard as benchmark.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.38P

1.

To determine