Solved by Expert Tutors
Materials Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set...
Solved by Expert Tutors
Question

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 @ $4)$12.00Direct labor (0.75 hr. @ $12)9.00Total prime cost$21.00

During the first month of the year, Boise plant produced 92,000 belts. Actual leather purchased was 297,500 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 78,400 hours at $15.00 per hour.

Required:

Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. If required, enter favorable values as negative numbers.

Price variance$_____________Favorable 


Usage variance$____________Unfavorable 


Total variance$_______________Favorable 

Step-by-step answer

inia pulvinar tortor nec facilisis. Pellentesque dapibus efficitu


icitur laoreet. Nam risus ante, dapibus a molestie consequa


sum dolor sit amet, consectetur adipiscing e

trices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit

Subscribe to view the full answer

Other answers

amet, consectetur adipiscing elit. Nam la

consectetur adipiscing elit. Nam lacini

sque dapibus efficitur laoreet. Nam

facilisis. Pellentesque dapibus efficitu

acinia pulvi

inia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui


inia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congu


, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a mole


a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipi

Subscribe to view the full answer

Subject: Accounting, Business

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes