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Price and efficiency variances benchmarking Nantucket Enterprises manufactures insulated cold beverage cups printed with college and corporate logos which it distributes nationally in lots of

 Price and efficiency variances, benchmarking. Nantucket Enterprises manufactures insulated cold beverage cups printed with college and corporate logos, which it distributes nationally in lots of 12 dozen cups. In June 2017, Nantucket produced 5,000 lots of its most popular line of cups, the 24-ounce lidded tumbler, at each of its two plants, which are located in Providence and Amherst. The production manager, Shannon Bryant, asks her assistant, Joel Hudson, to find out the precise per-unit budgeted variable costs at the two plants and the variable costs of a competitor, Beverage Mate, who offers similar-quality tumblers at cheaper prices. Hudson pulls together the following information for each lot: Per lot Providence Plant Amherst Plant Beverage Mate Direct materials 74 lbs. @ $3.20 per lb. 76.5 lbs. @ $3.10 per lb. 70 lbs. @ $2.90 per lb. Direct manufacturing labor 2.5 hrs. @ $12.00 per hr. 2.4 hrs. @ $12.20 per hr. 2.4 hrs. @ $10.50 per hr. Variable overhead $20 per lot $22 per lot $20 per lot 1. What is the budgeted variable cost per lot at the Providence Plant, the Amherst Plant, and at Beverage Mate? 2. Using the Beverage Mate data as the standard, calculate the direct materials and direct manufacturing labor price and efficiency variances for the Providence and Amherst plants.

Jun 25 2020 View more View Less

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