Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 set the

image text in transcribed

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 set the following standards for materials and labor: Leather (5 strips@$3.00) Direct labor (0.75 hr. @ $8.00) Total prime cost During the first month of the year, the Boise plant produced 32,000 belts. Actual leather purchased was 100,000 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 33,000 hours at $12.50 per hour Required 1. Compute the costs of leather and direct labor that should be incurred for the production of 32,000 leather belts Materials Labor 15.00 6.00 $21.00 2. Compute the total budget variances for materials and labor Total Budget Variance Favorable Materials Unfavorable Labor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

9th Edition

1266796851, 9781266796852

More Books

Students also viewed these Accounting questions

Question

7.3 Describe considerations in the preliminary applicant screening.

Answered: 1 week ago

Question

7.2 Explain the selection process.

Answered: 1 week ago