11. Which of the following is not true concerning direct materials variances a. The person responsible for the direct materials price variance often be the purchasing agent. b. The person responsible for the direct materials price variance will . The materials prie varinnce alwa uses the actoal quamtity o d. The materials quantity varianoe uses the actual quantity of materials often be the production manager materials used 12. Caballero Corporation produces high-quality leather saddles. The company has a standard cost system and has set the following standards for mateas and labor: $300 Leather (20 strips @ $15) Direet labor (15 hours @ $15) Total prime cost 225 $525 During the year Caballero produced 150 saddles. Actual leather purchased was 3,100 strips, at $12 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 2,500 hours at $16 per hour. Compute the costs of leather and direct labor that should have been incurred for the production of 150 saddles. a $36,000 and $36,000 b. $46,500 and $37,500 c. $37,200 and $40,000 d. $45,000 and $33,750