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Cinturon Corporation produces high-quality leather belts. The company's plant in Bolse 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 Bolse uses a standard costing system and has set the following standards for materials and labor: Leather (3 strips $4) $12.00 Direct labor (0.75 hr. $12) 9.00 Total prime cost $21.00 During the first month of the year, the Bolse plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $4.50 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 79,400 hours at $13.00 per hour. Required: 1. Break down the total variance for labor into a rate variance and an efficiency varlance using the columnar and formula approaches. Unfavorable Rate variance Efficiency variance Unfavorable Total variance Unfavorable
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