Materials Variances Cinturon Corporation produces quality leather be the company's plant in Boise uses a sta ng system and has set the following standards for materials and tabor Leather ( 3 4 ) $12.00 Direct labor(0.75 h. $12) Totale con 521.00 purchased was 296,500 strips at $3.60 per trip. There were beginning or ending inventories of leather cal director During the first month of the year, the Bose plant produced 92,000 bets. was 78,900 hours at $12.50 per hour Required: 1. break down the r ance formatensis var the chamar and formula aproaches. Enter favorable values Price variance Usage varias Total variance X Favorable X Unterble X Favorable the purchasing manager that a cheaper source of the tra n scovered and that this is estandard bepdated to reflect this new, less expensive source of leather we should the nu 2. CONCEPTUAL CONCTION suppose these plant manager investigates the a w ariances and there for the favorable materials pric e Quite please the purchasing manager s that plant manager update the materice standard au why or why not? 3. No. The gestion of the purchasing mana premre vers p rice can produce 2. Yes, the purchasing manager is correct. This will improve the overall profitability of the company 3. No. The sugestion of the purchasing managers incorrect. The matere navate and so cha els age and bor variances and that be made Paco During the month of the year, the i was 70,200 hours 5.00 per hour ntroduced 97.000 bets Actual the purch was 87.500 4.50 per There were beginnin g w r dt det bor a variance larati > CONCEPTUAL CORRECTION A then indicates that thereof lower the th change t more the w b a h ereduction a and time is recent out the s the have to