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Budget Variances, Materials and Labor Cinturon Corporation produces high - quality leather belts. The company's plant in Boise uses a standard costing system and has
Budget Variances, Materials and Labor
Cinturon Corporation produces highquality leather belts. The company's plant in Boise uses a standard costing system and has set the
following standards for materials and labor:
During the first month of the year, the Boise plant produced belts. Actual leather purchased was strips at $ per strip.
There were no beginning or ending inventories of leather. Actual direct labor was hours at $ per hour.
Required:
Compute the costs of leather and direct labor that should be incurred for the production of leather belts.
Materials $
Labor $
Compute the total budget variances for materials and labor.
Total Budget Variance
Materials
Labor
Unfavorable
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