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 @ $6.00) $18.00 Direct labor (0.25 hr. @ $10.00) 2.50 Total prime cost $20.50 During the first month of the year, the Boise plant produced 49,000 belts. Actual leather purchased was 100,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 33,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 49,000 leather belts. Materials $fill in the blank 1 Labor $fill in the blank 2 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials $fill in the blank 3 Labor $fill in the blank 5
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 @ $6.00) $18.00 Direct labor (0.25 hr. @ $10.00) 2.50 Total prime cost $20.50 During the first month of the year, the Boise plant produced 49,000 belts. Actual leather purchased was 100,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 33,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 49,000 leather belts. Materials $fill in the blank 1 Labor $fill in the blank 2 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials $fill in the blank 3 Labor $fill in the blank 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a
| Leather (3 strips @ $6.00) | $18.00 |
| Direct labor (0.25 hr. @ $10.00) | 2.50 |
| Total prime cost | $20.50 |
During the first month of the year, the Boise plant produced 49,000 belts. Actual leather purchased was 100,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 33,000 hours at $13.50 per hour.
Required:
1. Compute the costs of leather and direct labor that should be incurred for the production of 49,000 leather belts.
| Materials | $fill in the blank 1 |
| Labor | $fill in the blank 2 |
2. Compute the total budget variances for materials and labor.
| Total |
||
| Materials | $fill in the blank 3 |
|
| Labor | $fill in the blank 5 |
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education