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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
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 (3 strips @ $6) $18.00 Direct labor (0.75 hr. @ $16) 12.00 $30.00 Total prime cost During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,100 hours at $17.50 per hour. Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches. Rate variance Efficiency variance Total variance
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