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 @ $$4)$ $$12\mathrm{.}00$ Direct labor $(0\mathrm{.}75$ hr$.$ @ $$12)9\mathrm{.}00$ Total prime cost $$21\mathrm{.}00$ During the first month of the year, the Boise plant produced $92,000$ belts. Actual leather purchased was $287,500$ strips at $$3\mathrm{.}60$ per strip. There were no beginning or ending inventories of leather. Actual direct labor was $78,200$ hours at $$12\mathrm{.}50$ per hour.

$1.)$ compute the costs of leather indirect labor that should be incurred for the production of $92,000$ leather belts.

$2.)$ compute the total budget variances for materials and labor.

$3.)$ would you consider these variances material with a need for investigation? explain