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.Answer:Total standard cost of leather = $600,000Total standard cost of direct labor = $82,500

Calculation of Standard Cost of LeatherStandard Cost of Leather = Units Produced x (Strips per Belt…

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

Section: Chapter Questions

Problem 39E

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Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is as follows: The cost driver for each cost pool and its expected activity is as follows: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing? C. Compared to ABC costing, was each products overhead under- or over applied? D. How much was overhead under- or over applied for each product?
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Alpesh
Just need to know if I got the right answer 1. Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 9.2 grams $ 3.80 per gram Direct labor 0.3 hours $ 38.00 per hour Variable overhead 0.3 hours $ 8.80 per hour The company produced 7,000 units in January using 41,110 grams of direct material and 2,560 direct labor-hours. During the month, the company purchased 46,200 grams of the direct material at $3.50 per gram. The actual direct labor rate was $37.30 per hour and the actual variable overhead rate was $8.60 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is: A.$420U B $512U C.$420F D. $512F I got $512F

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