Answer this with correct steps Question: 2.7Bolsa Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costingsystem and has set the following standards for materials and labor:Leather (4 strips @ $5.00)$20.00Direct labor (0.25 hr. @ $11.00) 2.75Total prime cost$22.75During the first month of the year, Boise plant produced 30,000 belts. Actual leather purchased was 130,000strips at $3.00 per strip. There were no beginning or ending inventories of leather. Actual direct labor was35,000 hours at $13.50 per hour.Compute the costs of leather and direct labor that should be incurred for the production of 30,000 leather belts.

Concept of Standard Costs:Standard costs represent predetermined costs assigned to the production of…

Answered: Question: 2.7 Bolsa Corporation…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

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Problem 39E

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Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.
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Bolsa corporation produces high quality leather belts.
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Use the following information for exercise: Cinturon Corporation produces high-quality leather belts. The company's plant in Newcastle uses a standard costing system and has set the following standards for materials and labour: Leather (3 strips @ $4) $12.00 Direct labour (0.75 hr @ $18 13.50 Total prime cost $25.50 During the first month of the year, the Newcastle 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 labour was 78 200 hours at $18.50 per hour. BUDGET VARIANCES, MATERIALS AND LABOUR Refer to the information for Cinturon Corporation above. REQUIRED: 1 Compute the costs of leather and direct labour that should be incurred for the production of 92 000 leather belts. 2 Compute the total budget variances for materials and labour. 3 Would you consider these variances material with a need for investigation? Explain.

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