Budget Variances, Materials and Labor

Cinturon Corporation produces high$-$quality leather belts. The company's plant in Boise uses a standard costing system and has set the

following standards for materials and labor:

During the first month of the year, the Boise plant produced $34,000$ belts. Actual leather purchased was $150,000$ strips at $$3\mathrm{.}00$ per strip.

There were no beginning or ending inventories of leather. Actual direct labor was $35,000$ hours at $$9\mathrm{.}50$ per hour.

Required:

Compute the costs of leather and direct labor that should be incurred for the production of $34,000$ leather belts.

Materials $,$$

Labor $

Compute the total budget variances for materials and labor.

Total Budget Variance

Materials

Labor

Unfavorable $$