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:

Leather (3 strips @ $3.00)	$9.00
Direct labor (0.25 hr. @ $10.00)	2.50
Total prime cost	$11.50

During the first month of the year, the Boise plant produced 46,000 belts. Actual leather purchased was 110,000 strips at $3.00 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 33,000 hours at $9.00 per hour.

Required:

1. Compute the costs of leather and direct labor that should be incurred for the production of 46,000 leather belts.

Materials
Labor