You are a new junior accountant at In Focus 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.

Drop down for requirement 2:

Input price of firm

Input price of Ind. BM

Input quantity of firm

Input quantity of Ind. BM

Drop down options for requirement % over standard.

Input price per qty of firm

Input price per qty of Ind. BM

Variable OH rate of firm

Unit Variable Costs - Member Firms For the Month Ended September 30, 2017 Firm A Firm B Firm C Firm D Industry Benchmark Materials input 1.90 2.00 2.20 2.40 1.90 oz. of glass Materials price $ 4.90 $ 5.15 $ 5.00 $ 4.65 $ 5.00 per oz. Labor-hours used 0.60 0.85 0.55 0.50 0.50 hours Wage rate $ 14.75 $ 14.25 $ 14.50 $ 16.25 $ 12.75 per DLH Variable overhead rate $ 8.50 $ 13.25 $ 7.25 $ 11.00 $ 11.50 per DLH Requirement 1. 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 overhead components. (Round all cost amounts to the nearest cent. Round the percentages to two decimal places. Due to rounding the total of the percentages may not equal 100%.) Firm A Firm B Firm C Firm D Direct materials Direct labor Variable overhead 100.00 100. .00 100.00 100.00 Total Requirement 2. Using the trade association's industry benchmark, calculate direct materials and direct manufacturing labor price and efficiency variances for the four firms. Calculate the percent over standard for each firm and each variance. (Abbreviation used: Ind. BM = Industry Benchmark.) Before calculating the variances, determine the formula you will use to calculate the price variance of each firm. A ) = Price variance Now determine the formula you will use to calculate the efficiency variance of each firm. xi - )= Efficiency variance Now determine the formula you will use to calculate the % over standard. % Over Std. ) x 100 = Now calculate the direct materials and direct manufacturing labor price and efficiency variances for the four firms using the industry standard as a benchmark. Calculate the percent over standard for each firm and each variance. Label each variance as favorable (F) or unfavorable (U). (Round all amounts to two decimal places. For amounts with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Use parentheses or a minus sign for percentages under standard. Abbreviation used: var = variance) Firm A Firm B Firm D % over standard % over standard Firm C % over Variance standard % over standard Variance Variance Variance DM price var. DM efficiency var. DL price var. DL efficiency var. Unit Variable Costs - Member Firms For the Month Ended September 30, 2017 Firm A Firm B Firm C Firm D Industry Benchmark Materials input 1.90 2.00 2.20 2.40 1.90 oz. of glass Materials price $ 4.90 $ 5.15 $ 5.00 $ 4.65 $ 5.00 per oz. Labor-hours used 0.60 0.85 0.55 0.50 0.50 hours Wage rate $ 14.75 $ 14.25 $ 14.50 $ 16.25 $ 12.75 per DLH Variable overhead rate $ 8.50 $ 13.25 $ 7.25 $ 11.00 $ 11.50 per DLH Requirement 1. 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 overhead components. (Round all cost amounts to the nearest cent. Round the percentages to two decimal places. Due to rounding the total of the percentages may not equal 100%.) Firm A Firm B Firm C Firm D Direct materials Direct labor Variable overhead 100.00 100. .00 100.00 100.00 Total Requirement 2. Using the trade association's industry benchmark, calculate direct materials and direct manufacturing labor price and efficiency variances for the four firms. Calculate the percent over standard for each firm and each variance. (Abbreviation used: Ind. BM = Industry Benchmark.) Before calculating the variances, determine the formula you will use to calculate the price variance of each firm. A ) = Price variance Now determine the formula you will use to calculate the efficiency variance of each firm. xi - )= Efficiency variance Now determine the formula you will use to calculate the % over standard. % Over Std. ) x 100 = Now calculate the direct materials and direct manufacturing labor price and efficiency variances for the four firms using the industry standard as a benchmark. Calculate the percent over standard for each firm and each variance. Label each variance as favorable (F) or unfavorable (U). (Round all amounts to two decimal places. For amounts with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Use parentheses or a minus sign for percentages under standard. Abbreviation used: var = variance) Firm A Firm B Firm D % over standard % over standard Firm C % over Variance standard % over standard Variance Variance Variance DM price var. DM efficiency var. DL price var. DL efficiency var