Figure 10-3Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:
During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.
-Refer to Figure 10-3. Compute the costs of leather and direct labor that should have been incurred for the production of 125 boots.
A) $36,000 and $36,000
B) $46,500 and $37,500
C) $37,200 and $20,000
D) $30,000 and $15,000

Question

Figure 10-3Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:
  During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.
-Refer to Figure 10-3. Compute the costs of leather and direct labor that should have been incurred for the production of 125 boots.
A) $36,000 and $36,000 
B) $46,500 and $37,500 
C) $37,200 and $20,000 
D) $30,000 and $15,000

Quizplus · Accepted Answer

The Answer of Figure 10-3Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:
  During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.
-Refer to Figure 10-3. Compute the costs of leather and direct labor that should have been incurred for the production of 125 boots.
A) $36,000 and $36,000 
B) $46,500 and $37,500 
C) $37,200 and $20,000 
D) $30,000 and $15,000

Figure 10-3Bortello Corporation Produces High-Quality Leather Boots