Question
In: Accounting
Pato Corporation produces leather sandals. The company uses a standard costing system and has set the...
Pato Corporation produces leather sandals. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one pair of sandals): Leather (3 strips @ $5) $15 Direct labor (2 hrs. @ $6) 12 Total prime cost $27 During the year, Pato produced 4,000 pairs of sandals. The actual leather purchased was 12,400 strips at $4.98 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 8,400 hours at $6.25 per hour. Required: 1. Compute the costs of leather and direct labor that should have been incurred for the production of 4,000 pairs of sandals. 2. Compute the total budget variances for direct materials and direct labor. 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Prepare the journal entries associated with these variances. 4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Prepare the journal entries associated with these variances.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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 $12 per hour
variable overhead 2.5 hours ?? per hour
During May, Pato purchased leather strips at a total cost of $124,250 and had
direct labor totaling $171,100. During May, Pato used 13,600 leather strips in
the production of...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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 $12 per hour
variable overhead 2.5 hours ?? per hour
During May, Pato purchased leather strips at a total cost of $124,250 and had
direct labor totaling $171,100. During May, Pato used 13,600 leather strips in
the production of...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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 $12 per hour
variable overhead 2.5 hours ?? per hour
During May, Pato purchased leather strips at a total cost of $124,250 and had
direct labor totaling $171,100. During May, Pato used 13,600 leather strips in
the production of...
Pato Company produces leather sandals. The company employs a standard costing system and has the following...
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 $12 per hour
variable overhead 2.5 hours ?? per hour
During May, Pato purchased leather strips at a total cost of $124,250 and had
direct labor totaling $171,100. During May, Pato used 13,600 leather strips in
the production of...
Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the...
Haversham Corporation produces dress shirts. The company uses a
standard costing system and has set the following standards for
direct materials and direct labor (for one shirt):
Fabric (1.5 yds. @ $2.80)
$4.20
Direct labor (1.1 hr. @ $20)
22.00
Total prime cost
$26.20
During the year, Haversham produced 9,700 shirts. The actual
fabric purchased was 14,450 yards at $2.76 per yard. There were no
beginning or ending inventories of fabric. Actual direct labor was
10,790 hours at $19.50 per...
Please answer asap and double check, thanks! Pato Company produces leather sandals. The company employs a...
Please answer asap and double check, thanks!
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...
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