Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 @ $4) $12.00
Direct labor (0.75 hr. @ $12) 9.00
Total prime cost $21.00

During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $4.20 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 variance using the columnar and formula approaches.

Rate variance $ Unfavorable
Efficiency variance $ Unfavorable
Total variance $ Unfavorable

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 Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

More Books

Students also viewed these Accounting questions

Question

Do teachers across cultures differ in immediacy? Explain.

Answered: 1 week ago