Budget Variances, Materials and Labor Cinturon Corporation produces high-quality leather beits. 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 92,000 beits, Actual leather purchased was 287,500 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 78,200 hours at $12.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 92,000 leather belts. 2. Compute the total budget variances for materials and labor