Budget Variances, Materials and Labour Mahn Corporation produces high-quality leather belts. The company uses a standard costing...

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Budget Variances, Materials and Labour
Mahn Corporation produces high-quality leather belts. Thecompany uses a standard costing system and has set the followingstandards for materials and labour:
Leather (4 strips @ $4.00) $16.00
Direct labour (0.25 hr. @ $14.00) 3.50
Total prime cost $19.50
During the first month of the year, Mahn produced 43,000 belts.Actual leather purchased was 120,000 strips at $3.10 per strip.There were no beginning or ending inventories of leather. Actualdirect labour was 35,000 hours at $11.00 per hour.

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Actual data Units of belt 43000 No Of strips 120000 310 per strip Labour hours 35000 hours 11 per hour Standard data No Of strips 4 strips per unit 43000 units No Of strips 172000 4 per strip Labour hours 120000 strips 025 hour Labour hours 30000 See Answer

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Budget Variances, Materials and LabourMahn Corporation produces high-quality leather belts. Thecompany uses a standard costing system and has set the followingstandards for materials and labour:Leather (4 strips @ $4.00)$16.00Direct labour (0.25 hr. @ $14.00)3.50Total prime cost$19.50During the first month of the year, Mahn produced 43,000 belts.Actual leather purchased was 120,000 strips at $3.10 per strip.There were no beginning or ending inventories of leather. Actualdirect labour was 35,000 hours at $11.00 per hour.

Leather (4 strips @ $4.00)	$16.00
Direct labour (0.25 hr. @ $14.00)	3.50
Total prime cost	$19.50