Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system an
Posted: Thu Apr 28, 2022 11:17 am
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 $3.60
per strip. There were no beginning or ending inventories of
leather. Actual direct labor was 78,200 hours at $14.50 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 $fill in the blank
Unfavorable Efficiency variance $fill in the blank
Total variance $fill in the blank
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 $3.60
per strip. There were no beginning or ending inventories of
leather. Actual direct labor was 78,200 hours at $14.50 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 $fill in the blank
Unfavorable Efficiency variance $fill in the blank
Total variance $fill in the blank