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Pato Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals:
Pato Company produces leather sandals. The company employs a standard costing system and has the following standards in order to produce one pair of sandals: direct materials direct labor variable overhead standard quantity 2 leather strips 2.5 hours 2.5 hours standard price ?? per strip $10 per hour ?? per hour During May, Pato purchased leather strips at a total cost of $124,520 and had direct labor totaling $117,100. During May, Pato used 18,790 leather strips in the production of sandals. Pato had no beginning inventories of any type for May. At May 31, Pato had 780 leather strips remaining in its direct materials inventory. Pato Company reported the following variances for May: ......... IS VWT SWITCS Direct material price variance .... Direct labor rate variance ............. Total direct labor variance ... Variable overhead spending variance ..... Variable overhead efficiency variance ....... 11 LUICE . . . . . . . . . . . . . . . $7,100 unfavorable $29,500 favorable $8,900 unfavorable $2,440 favorable $34,560 unfavorable Calculate the number of pairs of sandals produced by Pato Company in May
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