In: Accounting
Pato Company produces leather sandals. The company
employs a standard costing
system and has the following standards in order to produce one pair of sandals:
standard quantity
standard price direct materials 2 leather strips ?? per
strip direct labor 2.5 hours $10 per hour
variable overhead 2.5 hours ?? per hour
During May, Pato purchased leather strips at a total
cost of $124,520 and had
direct labor totaling $117,100. During May, Pato used 18,790
leather strips in
the production of sandals. Pato had no beginning inventories of any
type for
May. At May 31, Pato had 780 leather strips remaining in its direct
materials
inventory.
Pato Company reported the following variances for May:
Direct material price variance .............. $7,100
unfavorable
Direct labor rate variance .................. $29,500
favorable
Total direct labor variance ................. $8,900
unfavorable
Variable overhead spending variance ......... $2,440
favorable
Variable overhead efficiency variance ....... $34,560
unfavorable
Calculate the number of pairs of sandals
produced by Pato Company in May