Q.1 Materials Variances

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

During the first month of the year, Boise plant produced 92,000 belts. Actual leather purchased was 270,500 strips at $4.20 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,300 hours at $15.00 per hour.

Required:

Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. If required, enter favorable values as negative numbers.

Price variance$

Usage variance$

Total variance$

Q.2. Materials Variances

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

During the first month of the year, Boise plant produced 92,000 belts. Actual leather purchased was 270,500 strips at $4.20 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,300 hours at $15.00 per hour.

Required:

Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. If required, enter favorable values as negative numbers.

Price variance$

Usage variance$

Total variance$

Q.3. Total Labor Variance

Botella Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.015 hours. During the month of April, 490,000 bottles were produced using 15,000 labor hours @ $10.25. The standard wage rate is $8.25 per hour.

Required:

Calculate the total variance for production labor for the month of April. If required, round your answer to the nearest cent.

Q.4. Labor Variances

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

During the first month of the year, 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 78,200 hours at $12.50 per hour.

Required:

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$