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 (2 strips @ $6.00) Direct labor (0.25 hr. @ $9.00) Total prime cost During the first month of the year, the Boise plant produced 41,000 belts. Actual leather purchased was 120,000 strips at $3.10 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 34,000 hours at $16.00 per hour. Required: Materials Labor 1. Compute the costs of leather and direct labor that should be incurred for the production of 41,000 leather belts. $12.00 Materials 123,000 Labor 2.25 $14.25 2. Compute the total budget variances for materials and labor. Total Budget Variance 3. Conceptual Connection: Would you consider these variances material with a need for investigation?

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 (2 strips @ $6.00) Direct labor (0.25 hr. @ $9.00) Total prime cost During the first month of the year, the Boise plant produced 41,000 belts. Actual leather purchased was 120,000 strips at $3.10 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 34,000 hours at $16.00 per hour. Required: Materials Labor 1. Compute the costs of leather and direct labor that should be incurred for the production of 41,000 leather belts. $12.00 Materials 123,000 Labor 2.25 $14.25 2. Compute the total budget variances for materials and labor. Total Budget Variance 3. Conceptual Connection: Would you consider these variances material with a need for investigation?

Name: Budget Variances, Materials and LaborCinturon Corporation produces hi
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Budget Variances, Materials and LaborCinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materialsand labor:Leather (2 strips @ $6.00)Direct la

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Yammy Company currently produces ultimate discs in an automated process. Expected production per month is 80,000 units. The required direct materials costs $0.20 per unit and labor costs $0.10 per unit. Manufacturing fixed overhead costs are $5,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget total product costs for 80,000 and 40,000 units, respectively?
ABC Pillow produces and sells animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Administrative expenses, all fixed $12,000 per month Ending inventories: Direct materials $38 per unit $ 2 per unit $60,000 per month -0- WIP -0- Finished goods 750 units 11) What is gross margin when using absorption costing? A) $95,000 B) $109,500 C) $154,500 D) $49,500
Animent Industries, Inc. (AII), developed standard costs for direct material and direct labor. In 2015, AII estimated the following standard costs for one of their major products, the 10-gallon plastic container.. Budgeted quantity Budgeted price Direct materials 0.10 pounds $60 per pound Direct labor 0.05 hours $30 per hour During June, AII produced and sold 20,000 containers using 1,900 pounds of direct materials at an average cost per pound of $64 and 1,000 direct manufacturing labor-hours at an average wage of $30.50 per hour.The direct manufacturing labor efficiency variance during June is ________.
Ahlia Company developed standard costs for direct material and direct labor. In 2021, Ahlia estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity 0.10 pounds Budgeted price Direct materials $31 per pound Direct labor $16 per hour During June, Ahlia produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $30 and 250 direct manufacturing labor- hours at an average wage of $15.25 per hour. Instructions: 0.05 hours 1. Compute the direct materials price variance. 2. Compute the direct manufacturing labor efficiency variance.
Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. (b) 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Your answer is correct. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance Fixed-MOH Fixed-MOH volume variance $ (2) $ (3) @ $6/square yard @ $16/DL hour @ $2.80/DL hour No. Account Titles and Explanation (1) @ $5/DL hour 514 1650 2164 Favorable Record the journal entries to accompany the following…
lion athletics company manufactures commuter bicycles from recycled materials. the following data for october are available: quantity of direct labor used- 5,000 hours actual rate for direct labor- $22.75 per hour bicycles completed in october- 800 bicycles standard direct labor per bicycle- 6 hours standard rate for direct labor- $24 per hour NOW FIND: direct labor rate variance: direct labor time variance: total direct labor cost variance:
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.60 Variable overhead 0.80 Fixed overhead 1.90 Total unit cost $4.95 For the coming year, Play-Disc expects to make 330,000 plastic discs, and to sell 311,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $4.95. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs: $- Select - - Select - Overhead: - Select - - Select - Total cost per unit $fill in the blank 04d2fcfb606b005_9 Total ending inventory cost $fill in the blank 04d2fcfb606b005_10 Question Content Area 2. What…
Dickerson Company, which uses an activity-based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data: Travel trailers Boat trailers Budgeted units to be produced 2,250 2,900 Budgeted number of setups 340 560 Budgeted number of direct labor hours per unit 40 60 Total budgeted setup costs for the year are $158,400. If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers? Select one: a. $104,400 b. $59,840 c. $282.86 d. $158,400 e. $98,560
Computing unit costs at different levels of production.French Fragrances, Ltd. budgeted for 13,000 bottles of perfume Belle during May. The unit cost of Belle was $24, consisting of direct materials, $8; direct labor, $9; and factory overhead, $7 (fixed, $3; variable, $4). a.What would be the unit cost if 15,000 bottles were manufactured? b.What would be the unit costif 24,000 bottles were manufactured? c.Explain why a difference occurs in the unit costs.
Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should require 13 machine hours. According to the static budget, Safeflower expected to incur the following: (Click the icon to view the static budget information.) During August, Safeflower actually used 500 machine hours to make 86 connectors and spent $5,300 in variable manufacturing costs and $9,100 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Safeflower. A. $290 F OB. $2,800 U OC. $5,890 F O-D. $3,090 F Data Table 1,300 machine hours per month (100 connectors x 13 machine hours per connector) $6,500 in variable manufacturing overhead costs $7,535 in fixed manufacturing overhead costs Print Done X
The total factory overhead for Garment Heater Company is budgeted for the year at $300,000. Garment Heater Company manufactures two types of furnaces: Red Deluxe and Energy Green. The Red Deluxe requires 10 direct labor hours for manufacture. The Energy Green requires 5 direct labor hours for manufacture Each product is budgeted for 200 units of production for the year. Determine (a) total number of budgeted direct labor hours for the year (b) the single plant wide factory overhead rate (c) the factory overhead allocated per unit for each product using the single plantwide factory overhead rate.
Compute the Total number of pounds of excess direct materials used for August