Zach does not stor ive, Square feet of wood. Zach bought wood for $7,350 (and used the entire quantityl and heumed lab of $2,375. For the month of September, Zach's workers produceu the t 7-45 price and efficiency variances for direct manufacturing labor. 2 For the construction department, calculate the price and efficiency variances for the wood and card indi Record the journal entries for the variances incurred. department of Col cameras an aver 3. Disc uss logical explanations for the combination of variances that the construction depa legiate Corn Hole experienced. Taiwan materials and manufacturing labor variances for benchmarking. You are a new jun us Corporation, maker of lenses for eyeglasses. Your company sells generic 7-43 Use of accountant at In and qua 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 Foc Unit Variable Costs Member Firms for the Month Ended September 30, 2017 2.15 0.75 Firm B 2.00 Firm C 2.20 Firm D 2.60 Industry Benchmark oz. of glass Firm A S 500 $14.50 $14.00 $14.25 $15.25 $12.50 per DLH 2.15 Materials input Materials price Labor-hours used Wage rate Variable overhead rate $ 925 $14.00 $7.75 11.75 S1225 per DLH 5.25 $5.10 $4.50 $ 5.10 per oz. 1.00 0.65 0.70 0.70 hours I. total for the material, labor, and variable overhead components 2. Calculate the total variable cost per unit for each firm in the trade association. Compute the percent of Phoeb tation: 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. 3. Write a brief memo to your boss outlining the advantages and disadvantages of belonging to this trade association for benchmarking purposes. Include a few ideas to improve productivity that you want your 13 boss to take to the department heads' meeting 7-44 Direct manufacturing labor variances: price, efficiency, mix, and yield. Elena Martinez employs two workers in her wedding cake bakery. The first worker, Gabrielle, has been making wedding cakes for 15 20 years and is paid $25 per hour. The second worke One wedding cake ties for one cake are as follows: r, Joseph, is less experienced and is paid $15 per requires, on average, 6 hours of labor. The budgeted direct manufacturing labor qu hour. 17
