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. Compute the total budget variances for materials and labor, respectively. a. $2,800 F and $7,500 F b. $2,800 U and $7,500 F c. $2,800 F and $7,500 U d. $2,800 U and $7,500 U