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 (5 strips @ $2.00) $10.00 Direct labor (0.5 hr. @ $12.00) 6.00 Total prime cost $16.00 During the first month of the year, the Boise plant produced 35,000 belts. Actual leather purchased was 100,000 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 38,000 hours at $10.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 35,000 leather belts. Materials $fill in the blank 1 Labor $fill