Standard Quantities of Labor and Materials Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 6,500 units. Materials and labor standards for performing the repairs are as follows: Direct materials (1 recon kit @ $160) $160 Direct materials (1 cabinet @ $60) 60 Direct labor (4 hrs. @ $13) 52 Required: 1. Compute the standard hours allowed for a volume of 6,500 rebuilt units. hours 2. Compute the standard number of kits and cabinets allowed for a volume of 6,500 rebuilt units. Standard number of kits: kits Standard number of cabinets: cabinets 3. Suppose that during the first month of the year, 4,200 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month? Round your answer to the nearest whole unit. units Budget Variances, Materials and Labor 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 (4 strips @ $6.00) $24.00 Direct labor (1 hr. @ $9.00) 9.00 $33.00 Total prime cost During the first month of the year, the Boise plant produced 50,000 belts. Actual leather purchased was 130,000 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 38,000 hours at $16.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 50,000 leather belts. Materials $ Labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Favorable Materials $ Unfavorable Labor Standard Quantities of Labor and Materials Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 6,500 units. Materials and labor standards for performing the repairs are as follows: Direct materials (1 recon kit @ $160) $160 Direct materials (1 cabinet @ $60) 60 Direct labor (4 hrs. @ $13) 52 Required: 1. Compute the standard hours allowed for a volume of 6,500 rebuilt units. hours 2. Compute the standard number of kits and cabinets allowed for a volume of 6,500 rebuilt units. Standard number of kits: kits Standard number of cabinets: cabinets 3. Suppose that during the first month of the year, 4,200 standard hours were allowed for the units rebuilt. How many units were rebuilt during the first month? Round your answer to the nearest whole unit. units Budget Variances, Materials and Labor 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 (4 strips @ $6.00) $24.00 Direct labor (1 hr. @ $9.00) 9.00 $33.00 Total prime cost During the first month of the year, the Boise plant produced 50,000 belts. Actual leather purchased was 130,000 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 38,000 hours at $16.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 50,000 leather belts. Materials $ Labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Favorable Materials $ Unfavorable Labor
