Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor: 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 costs of leather and direct labor that should have been incurred for the production of 125 boots. a. $37,200 and $20,000 b. $30,000 and $15,000 c. $36,000 and $36,000 d. $46,500 and $37,500