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 (4 strips @ $4.00) $16.00 Direct labor (0.75 hr. @ $8.00) 6.00 Total prime cost $22.00 During the first month of the year, the Boise plant produced 44,000 belts. Actual leather purchased was 140,000 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 34,000 hours at $13.00 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 44,000 leather belts. Materials $ Labor $ 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials $ Favorable Labor $ Unfavorable 3. Conceptual Connection: Would you consider these variances material with a need for investigation? Yes/.