C Not secure apter 10 Setting Standards, Materials and Labor Variances Tom Benoed and Tony Sorrentino own a small business devoted te kitchen and bath granite Inotallations. Recently, building contractors have insisted on up tront bid prices for a house rather than the coot plus system and bath and Tony were used to. They worry because natural flaws in the granite make it impossibile to tell in advance exactly how much yanite will be used on a partikular job.In addition, granite can be easily broken, meaning that Tom or Tony could ruin a slab and would need to start over with local certified public accounting firm headed by Charlene Davenport. Charlene listened concerns and Charlene reviewed the invokes pertaining to a number of Tom and Tony's previous jobs to determine the average amount of granite and glue needed current condsions. The standards she develeped for one square foot of counter installed were as folows Granite, per square foot Glue (1O oz s0.15) Direct labor hours a new one. Sometimes the improperly cut pieces could be used for smaller installations, sometimes not. All their accounting is done by a to their concerns and suggested that it might be tine to-plemer tigheecorerols by setting up a tandard ering system. per square fook. She then uplated prices on both materials to roflet $50.00 Cutting labor (0.10 hr. $15) Instalation labor (0.25 hr.$25) these standards assumed that one seamless counter requires one sink ot (the space into which the sink wil fit) wen as otting the-er to fit the space au atable Charlene tracked the actiual costs incurred by Tom and Tony for granite morths. She found that following information on actual amounts used and cost was gathered Granite purchased and used (1,640 sq. ft.) Glue purchased and used (16,000 02.) Actual hours cutting labor Actual bours installation laber nstallation for the nest six months. She found that they completed SO jobs with an average of 32 square feet of granite installed in each one. The 80,248 2.560 429 Previous Next nment Score: 27.02% ll work saved C Not secure apter 10 Setting Standards, Materials and Labor Variances Tom Benoed and Tony Sorrentino own a small business devoted te kitchen and bath granite Inotallations. Recently, building contractors have insisted on up tront bid prices for a house rather than the coot plus system and bath and Tony were used to. They worry because natural flaws in the granite make it impossibile to tell in advance exactly how much yanite will be used on a partikular job.In addition, granite can be easily broken, meaning that Tom or Tony could ruin a slab and would need to start over with local certified public accounting firm headed by Charlene Davenport. Charlene listened concerns and Charlene reviewed the invokes pertaining to a number of Tom and Tony's previous jobs to determine the average amount of granite and glue needed current condsions. The standards she develeped for one square foot of counter installed were as folows Granite, per square foot Glue (1O oz s0.15) Direct labor hours a new one. Sometimes the improperly cut pieces could be used for smaller installations, sometimes not. All their accounting is done by a to their concerns and suggested that it might be tine to-plemer tigheecorerols by setting up a tandard ering system. per square fook. She then uplated prices on both materials to roflet $50.00 Cutting labor (0.10 hr. $15) Instalation labor (0.25 hr.$25) these standards assumed that one seamless counter requires one sink ot (the space into which the sink wil fit) wen as otting the-er to fit the space au atable Charlene tracked the actiual costs incurred by Tom and Tony for granite morths. She found that following information on actual amounts used and cost was gathered Granite purchased and used (1,640 sq. ft.) Glue purchased and used (16,000 02.) Actual hours cutting labor Actual bours installation laber nstallation for the nest six months. She found that they completed SO jobs with an average of 32 square feet of granite installed in each one. The 80,248 2.560 429 Previous Next nment Score: 27.02% ll work saved