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Labor 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 16) Direct labor (0.75 h $16) Total prime cost During the first month of the year the Bose plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $4.20 per strip. There were no beginning or ending inventories leather Actua direct labor was 79,400 hours at $16.50 per hour $18.00 12.00 $30.00 Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches Rate variance Unfavorable Efficiency variance Unfavorable

Labor 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 16) Direct labor (0.75 h $16) Total prime cost During the first month of the year the Bose plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $4.20 per strip. There were no beginning or ending inventories leather Actua direct labor was 79,400 hours at $16.50 per hour $18.00 12.00 $30.00 Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches Rate variance Unfavorable Efficiency variance Unfavorable

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...
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Labor Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Beise uses a standard costing system and has set the following standards for materials and labor Leather (3 strips 16) $18.00 Direct labor (0.75 h $16) 12.00 Total prime cost During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 207,500 strips at $4.20 per strip. There were no beginning or ending inventories of leather Actual direct labor was 79,400 hours at $16.50 per hour. $30.00 Total variance Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formuls approaches. Rate variance Unfavorable Efficiency variance Unfavorable Unfavorable V
Transcribed Image Text:Labor Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Beise uses a standard costing system and has set the following standards for materials and labor Leather (3 strips 16) $18.00 Direct labor (0.75 h $16) 12.00 Total prime cost During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 207,500 strips at $4.20 per strip. There were no beginning or ending inventories of leather Actual direct labor was 79,400 hours at $16.50 per hour. $30.00 Total variance Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formuls approaches. Rate variance Unfavorable Efficiency variance Unfavorable Unfavorable V
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