1 121 31 4 567 8 9 I10 I 11 12 13 14 15 117 118 Bolsa 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 @ $5.00) Direct labor (0.25 hr. @ $11.00) Total prime cost $20.00 2.75 $22.75 During the first month of the year, Boise plant produced 30,000 belts. Actual leather purchased was 130,000 strips at $3.00 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 35,000 hours at $13.50 per hour. 1. Compute the costs of leather and direct labor that should be incurred for the production of 30,000 leather belts. 2. Compute the total budget variances for materials and labor. - Assuming that you have two departments in this Rehabilitation Centre, PT and OT. The cleaning crew that services the building spends 30% of their time in PT, and 70% in OT due to the square footage that each department uses. a. What would be the allocation be to PT if the total annual cost of housekeeping is $20,000? b. What would be the allocation be to OT if the total annual cost of housekeeping is $20,000? F

1 121 31 4 567 8 9 I10 I 11 12 13 14 15 117 118 Bolsa 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 @ $5.00) Direct labor (0.25 hr. @ $11.00) Total prime cost $20.00 2.75 $22.75 During the first month of the year, Boise plant produced 30,000 belts. Actual leather purchased was 130,000 strips at $3.00 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 35,000 hours at $13.50 per hour. 1. Compute the costs of leather and direct labor that should be incurred for the production of 30,000 leather belts. 2. Compute the total budget variances for materials and labor. - Assuming that you have two departments in this Rehabilitation Centre, PT and OT. The cleaning crew that services the building spends 30% of their time in PT, and 70% in OT due to the square footage that each department uses. a. What would be the allocation be to PT if the total annual cost of housekeeping is $20,000? b. What would be the allocation be to OT if the total annual cost of housekeeping is $20,000? F

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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