Cintron Company produces high-quality leather belts. The Boise plant uses a stan

Question

Cintron Company produces high-quality leather belts. The Boise plant uses a standard costing system with the following standards for materials (leather strips) and direct labor.

There are no beginning or ending inventories for direct materials.

For direct labor, what is the standard quantity allowed?

Standard Price Standard Usage Leather Strips (Direct Materials) $ 4 4 strips Direct Labor $ 0.92 9 hours July Data Number of Belts Produced 22,363 Number of Leather Strips Purchased 107,496 Number of Labor Hours Used 236,017 Actuals Cost per Leather Strip $ 5 Actual Cost per Labor Hour $ 13

Explanation / Answer

Standard Hours for Actual Output = Standard Hour Per Hour x Actual Units Produced

= 9 x 22363

= 201267 Hours

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