1.
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
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.
Price and efficiency variance of direct material and direct manufacturing labor and their percentage over industry benchmark.
3.
Advantages and disadvantages of using industry’s standard as benchmark.
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Chapter 7 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
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