Homework Help is Here – Start Your Trial Now!
Business
Accounting
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: Line Item Description Cost Leather (3 strips @ $6) $18.00 Direct labor (0.75 hr. @ $16) 12.00 Total prime cost $30.00 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 78,700 hours at $16.50 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. Effect Line Item Description Amount Rate variance Efficiency variance Total variance $fill in the blank 1 FavorableUnfavorableUnfavorable $fill in the blank 3 FavorableUnfavorableUnfavorable $fill in the blank 5 FavorableUnfavorableUnfavorable

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: Line Item Description Cost Leather (3 strips @ $6) $18.00 Direct labor (0.75 hr. @ $16) 12.00 Total prime cost $30.00 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 78,700 hours at $16.50 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. Effect Line Item Description Amount Rate variance Efficiency variance Total variance $fill in the blank 1 FavorableUnfavorableUnfavorable $fill in the blank 3 FavorableUnfavorableUnfavorable $fill in the blank 5 FavorableUnfavorableUnfavorable

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 28P: Haversham Corporation produces dress shirts. The company uses a standard costing system and has set...
See similar textbooks
icon
Related questions
Question
100%

Please do not give solution in image format thanku 

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: Line Item Description Cost Leather (3 strips @ $6) $18.00 Direct labor (0.75 hr. @ $16) 12.00 Total prime cost $30.00 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 78,700 hours at $16.50 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. Line Item Description Effect Amount Rate variance Efficiency variance Total variance $fill in the blank 1 FavorableUnfavorableUnfavorable $fill in the blank 3 FavorableUnfavorableUnfavorable $fill in the blank 5 FavorableUnfavorableUnfavorable
Transcribed Image Text: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: Line Item Description Cost Leather (3 strips @ $6) $18.00 Direct labor (0.75 hr. @ $16) 12.00 Total prime cost $30.00 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 78,700 hours at $16.50 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. Line Item Description Effect Amount Rate variance Efficiency variance Total variance $fill in the blank 1 FavorableUnfavorableUnfavorable $fill in the blank 3 FavorableUnfavorableUnfavorable $fill in the blank 5 FavorableUnfavorableUnfavorable
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS