24.

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

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

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. Calculate the labor rate variance and the labor efficiency variance, respectively.

a.$4,500 U and $3,000 U

b.$4,500 U and $3,000 F

c.$4,500 F and $3,000 U

d.$4,500 F and $3,000 F

25.

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

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

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.$46,500 and $37,500

b.$37,200 and $20,000

c.$36,000 and $36,000

d.$30,000 and $15,000