Need help, can someone tell me the formulas for figuring out the following: comp

Question

Need help, can someone tell me the formulas for figuring out the following:

compute the following measures:

Total variable cost per unit for CarryIt, the competitors, and the industry average.

What is the percentage of the total for each component (materials, labor, and variable overhead)?

Assume industry data is your benchmark. What are the price and efficiency variances for direct materials and direct labor for each company?

What is the percentage over standard by company and by variance?

PromoTotes 3 Unit Variable Cost Item 4 5 Labor Hours 6 Labor Rate 7 Materials Input 8 Materials Price 9 Variable OH Rate 10 Carrylt Inc. Star Company GoldBag Corp LLC Industry Data 0.25 11.75 .5 yds 1.50 yd 0.35 11.25 45 yds 1.65 yd 6 0.2 11.95 675 yds 1.35 yd 5.25 0.3 12.5 .50 yds 1.55 yd 0.3 11.65 .55 yds 1.50 yd 5.45 Total variable cost per Percentage of material Percentage of labor of Percentage of overhead 11 unit 2 of total cost 13 total cost 4 of total cost

Explanation / Answer

unit variable cost item

Carrtit Inc.

Star Company

GoldBag Corp

PromoTotes LLC

Industry Data

material input In YDS

0.5

0.45

0.675

0.5

0.55

material price per YD

1.5

1.65

1.35

1.55

1.5

Material cost per unit (multiply of both)

0.75000

0.74250

0.91125

0.77500

0.82500

labor Hours

0.25

0.35

0.2

0.3

0.3

labor rate

11.75

11.25

11.95

12.5

11.65

labor cost per unit (multiply of both)

2.93750

3.93750

2.39000

3.75000

3.49500

variable OH rate

5

6

5.25

4.7

5.45

labor Hours

0.25

0.35

0.2

0.3

0.3

variable overhead per unit (multiply of both)

1.25000

2.10000

1.05000

1.41000

1.63500

Material cost per unit

0.75000

0.74250

0.91125

0.77500

0.82500

labor cost per unit

2.93750

3.93750

2.39000

3.75000

3.49500

variable overhead per unit

1.25000

2.10000

1.05000

1.41000

1.63500

Total variable cost per unit

4.93750

6.78000

4.35125

5.93500

5.95500

Percentage of material of total cost (Material cost per unit / Total variable cost per unit)

15.19%

10.95%

20.94%

13.06%

13.85%

Percentage of labor of total cost (labor cost per unit / Total variable cost per unit)

59.49%

58.08%

54.93%

63.18%

58.69%

Percentage of variable overhead of total cost (variable overhead per unit / Total variable cost per unit)

25.32%

30.97%

24.13%

23.76%

27.46%

Total Percentage

100.00%

100.00%

100.00%

100.00%

100.00%

Price variance

material price per YD

1.5

1.65

1.35

1.55

1.5

Less: standard price as per industry

1.5

1.5

1.5

1.5

1.5

Variance

0

0.15

-0.15

0.05

0

Indicate

None

Unfavorable

favorable

Unfavorable

None

labor rate

11.75

11.25

11.95

12.5

11.65

Less: standard price as per industry

11.65

11.65

11.65

11.65

11.65

Variance

0.1

-0.4

0.3

0.85

0

Indicate

Unfavorable

favorable

Unfavorable

Unfavorable

None

efficiency variances

material input In YDS

0.5

0.45

0.675

0.5

0.55

Less: standard input as per industry

0.55

0.55

0.55

0.55

0.55

Variance

-0.05

-0.1

0.125

-0.05

0

Indicate

favorable

favorable

Unfavorable

favorable

None

labor Hours

0.25

0.35

0.2

0.3

0.3

Less: standard hour as per industry

0.3

0.3

0.3

0.3

0.3

Variance

-0.05

0.05

-0.1

0

0

Indicate

favorable

Unfavorable

favorable

None

None

Carrtit Inc.

Star Company

GoldBag Corp

PromoTotes LLC

Industry Data

as per your question we can consider unfavorable variance (it means over standard)

standard data as per industry

Material price variance

0.15

0.05

1.5

Material quantity (efficiency) variance

0.125

0.55

labor price variance

0.1

0.3

0.85

11.65

labor efficiency variance

0.05

0.3

percentage over standard by company and by variance

% of Material price variance (Material price variance/1.5)

10.00%

3.33%

% of Material quantity (efficiency) variance ( Material quantity (efficiency) variance/0.55)

22.73%

% of labor price variance (labor price variance/11.65)

0.86%

2.58%

7.30%

% in labor efficiency variance (labor efficiency variance/0.30)

16.67%

unit variable cost item

Carrtit Inc.

Star Company

GoldBag Corp

PromoTotes LLC

Industry Data

material input In YDS

0.5

0.45

0.675

0.5

0.55

material price per YD

1.5

1.65

1.35

1.55

1.5

Material cost per unit (multiply of both)

0.75000

0.74250

0.91125

0.77500

0.82500

labor Hours

0.25

0.35

0.2

0.3

0.3

labor rate

11.75

11.25

11.95

12.5

11.65

labor cost per unit (multiply of both)

2.93750

3.93750

2.39000

3.75000

3.49500

variable OH rate

5

6

5.25

4.7

5.45

labor Hours

0.25

0.35

0.2

0.3

0.3

variable overhead per unit (multiply of both)

1.25000

2.10000

1.05000

1.41000

1.63500

Material cost per unit

0.75000

0.74250

0.91125

0.77500

0.82500

labor cost per unit

2.93750

3.93750

2.39000

3.75000

3.49500

variable overhead per unit

1.25000

2.10000

1.05000

1.41000

1.63500

Total variable cost per unit

4.93750

6.78000

4.35125

5.93500

5.95500

Percentage of material of total cost (Material cost per unit / Total variable cost per unit)

15.19%

10.95%

20.94%

13.06%

13.85%

Percentage of labor of total cost (labor cost per unit / Total variable cost per unit)

59.49%

58.08%

54.93%

63.18%

58.69%

Percentage of variable overhead of total cost (variable overhead per unit / Total variable cost per unit)

25.32%

30.97%

24.13%

23.76%

27.46%

Total Percentage

100.00%

100.00%

100.00%

100.00%

100.00%

Price variance

material price per YD

1.5

1.65

1.35

1.55

1.5

Less: standard price as per industry

1.5

1.5

1.5

1.5

1.5

Variance

0

0.15

-0.15

0.05

0

Indicate

None

Unfavorable

favorable

Unfavorable

None

labor rate

11.75

11.25

11.95

12.5

11.65

Less: standard price as per industry

11.65

11.65

11.65

11.65

11.65

Variance

0.1

-0.4

0.3

0.85

0

Indicate

Unfavorable

favorable

Unfavorable

Unfavorable

None

efficiency variances

material input In YDS

0.5

0.45

0.675

0.5

0.55

Less: standard input as per industry

0.55

0.55

0.55

0.55

0.55

Variance

-0.05

-0.1

0.125

-0.05

0

Indicate

favorable

favorable

Unfavorable

favorable

None

labor Hours

0.25

0.35

0.2

0.3

0.3

Less: standard hour as per industry

0.3

0.3

0.3

0.3

0.3

Variance

-0.05

0.05

-0.1

0

0

Indicate

favorable

Unfavorable

favorable

None

None

Carrtit Inc.

Star Company

GoldBag Corp

PromoTotes LLC

Industry Data

as per your question we can consider unfavorable variance (it means over standard)

standard data as per industry

Material price variance

0.15

0.05

1.5

Material quantity (efficiency) variance

0.125

0.55

labor price variance

0.1

0.3

0.85

11.65

labor efficiency variance

0.05

0.3

percentage over standard by company and by variance

% of Material price variance (Material price variance/1.5)

10.00%

3.33%

% of Material quantity (efficiency) variance ( Material quantity (efficiency) variance/0.55)

22.73%

% of labor price variance (labor price variance/11.65)

0.86%

2.58%

7.30%

% in labor efficiency variance (labor efficiency variance/0.30)

16.67%

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