Budget Variances, Materials and Labor Cinturon Corporation produces high-quality leather beles. The company's plant in Boise uses a standard costing system and has set the following standards for materials and laben Leather (5 strips@ $5.00) $30.00 Direct labor (1.25 hr. $9.00) 11.25 Total prime cost $41.25 Dunng the first month of the year, the Boise plant produced 38.000 belts. Actual leather purchased was 150.000 strips at $3.00 per strip. There were no beginning or ending Inventor at $11.50 per hour Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 38,000 leather belts, Materials Labor 2. Compute the total budget variances for materials and labor. Total Budget Variance Material Gabor 3. Concept Connection would you consider these variance mate with a need to estation? All worked Sise uses a standard costing system and has set the following standards for materials and labor! leather purchased was 150,000 strips at $3.00 per strip. There were no beginning or ending inventories of leather Actual direct labor was 38.000 hours production of 38.000 leather belts