Materials Variances 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) Direct labor (0.75 hr. @ $16) Total prime cost Required: $18.00 During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 303,500 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,500 hours at $16.50 per hour. Price variance 12.00 Usage variance $30.00 1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. Enter favorable values as negative numbers and unfavorable values as positive numbers.

Materials Variances 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) Direct labor (0.75 hr. @ $16) Total prime cost Required: $18.00 During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 303,500 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,500 hours at $16.50 per hour. Price variance 12.00 Usage variance $30.00 1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. Enter favorable values as negative numbers and unfavorable values as positive numbers.

Name: Materials VariancesCinturon Corporation produces high-quality leather
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Description: Materials VariancesCinturon 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 (3 strips @ $6)Direct labor (0.75 hr. @ $16)R

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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