Budget variances, Materials and Labor Cinturon Corporation produces high-qualty leather beits. The company's plant in Boise uses a stendard costing system and has set the following standards for materials and labo During the first menth of the yeac, the Bolse plant produced 47,000 beits. Actual leather purchased was 120,000 strips at 53.70 per strip. There were no beginhing or ending inventories of leather. Actual direct labor was 37,000 hours at 510.50 per hour. Required: 1. Compute the costs of leather and direct fabor that should be incurred for the production of 47,000 leather belts 2. Compute the total budget variances for msterials and labor: 3. Conceptual Connection: Would you conalder these variances matenat with a need for investigation