Use the following information for Exercises 10-45 through 10-47: 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: During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $3.60 per strip. There was no beginning or ending inventories of leather. Actual direct labor was 78,200 hours at$12.50 per hour. Exercise 10-45 Budget Variances, Materials and Labor Refer to the information for Cinturon Corporation above. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 92,000 leather belts. 2. Compute the total budget variances for materials and labor. 3. CONCEPTUAL CONNECTION Would you consider these variances material with a need for investigation? Explain.

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

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Chapter 10, Problem 45E
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