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:

Line Item Description	Cost
Leather (5 strips @ $6.00)	$30.00
Direct labor (1 hr. @ $9.00)	9.00
Total prime cost	$39.00

During the first month of the year, the Boise plant produced 35,000 belts. Actual leather purchased was 110,000 strips at $3.90 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 35,000 leather belts.

Line Item Description	Amount
Cost of materials	$fill in the blank 1
Cost of direct labor	$fill in the blank 2

2. Compute the total budget variances for materials and labor.

Line Item Description	Amount	Effect
Materials	$fill in the blank 3	FavorableUnfavorable
Labor	$fill in the blank 5	FavorableUnfavorable

3. Conceptual Connection: Would you consider these variances material with a need for investigation?

YesNo

4. Refer to Exhibit 2.2 for a description of data analytic types. What data analytic type is used in Requirements 1, 2, and 3?

The data analytic type for Requirement 1 is

descriptivediagnosticpredictiveprescriptive

.

The data analytic type that best fits Requirements 2 and 3 is

descriptivediagnosticpredictiveprescriptive

.