20. Caballero Corporation produces high-quality leather saddles. The company has a standard cost system and has set the following standards for materials and labor:

Leather (20 strips @ $15) 300

Direct Labor (15 hours @ $15) 225

Total prime cost 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 materials price variance and the materials usage variance, respectively.

a.

$9,000 F and $1,200 U

b.

$9,300 F and $1,500 U

c.

$9,300 U and $1,500 F

d.

$9,000 U and $1,200 F