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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 (5 strips @ $3.00) $15.00 Direct labor (0.5 hr. @ $11.00) 5.50 Total prime cost $20.50 During the first month of the year, the Boise plant produced 43,000 belts. Actual leather purchased was 140,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 36,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 43,000 leather belts. Cost of materials Cost of direct labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials $ Labor 3. Conceptual Connection: Would you consider these variances material with a need for investigation? 4. Refer to Exhibit 2.2 for a description of data analytic types. What data analytic type is used in Requirements 1, 2, and 3? The data analytic type for Requirement 1 is

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 (5 strips @ $3.00) $15.00 Direct labor (0.5 hr. @ $11.00) 5.50 Total prime cost $20.50 During the first month of the year, the Boise plant produced 43,000 belts. Actual leather purchased was 140,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 36,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 43,000 leather belts. Cost of materials Cost of direct labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials $ Labor 3. Conceptual Connection: Would you consider these variances material with a need for investigation? 4. Refer to Exhibit 2.2 for a description of data analytic types. What data analytic type is used in Requirements 1, 2, and 3? The data analytic type for Requirement 1 is

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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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 (5 strips @ $3.00) Direct labor (0.5 hr. @ $11.00) Total prime cost During the first month of the year, the Boise plant produced 43,000 belts. Actual leather purchased was 140,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 36,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 43,000 leather belts. Cost of materials Cost of direct labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials Labor $15.00 5.50 $20.50 $ 3. Conceptual Connection: Would you consider these variances material with a need for investigation? 4. Refer to Exhibit 2.2 for a description of data analytic types. What data analytic type is used in Requirements 1, 2, and 3? The data analytic type for Requirement 1 is The data analytic type that best fits Requirements 2 and 3 is
Transcribed Image Text: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 (5 strips @ $3.00) Direct labor (0.5 hr. @ $11.00) Total prime cost During the first month of the year, the Boise plant produced 43,000 belts. Actual leather purchased was 140,000 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 36,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 43,000 leather belts. Cost of materials Cost of direct labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials Labor $15.00 5.50 $20.50 $ 3. Conceptual Connection: Would you consider these variances material with a need for investigation? 4. Refer to Exhibit 2.2 for a description of data analytic types. What data analytic type is used in Requirements 1, 2, and 3? The data analytic type for Requirement 1 is The data analytic type that best fits Requirements 2 and 3 is
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