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 o $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 total budget variances for materials and labor, respectively, a $2.800 U und 57,500U b. 52.800 and 17.500 c. $2,000 F und 57.500 E d. $2.500 and 57.500 F 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. Oa. 537.200 and $20.000 Ob. 536,000 and $36.000 Oc. $46,500 and $37.500 Od. 550.000 and $15.000