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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

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 (3 strips @ $6) $18.00
Direct labor (0.75 hr. @ $16) 12.00
Total prime cost $30.00

During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $5.40 per strip. There was no beginning or ending inventories of leather. Actual direct labor was 78,200 hours at $16.50 per hour.

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1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches.

Line Item Description Amount Effect
Price variance $fill in the blank 1 FavorableUnfavorableFavorable
Usage variance $fill in the blank 3 FavorableUnfavorableUnfavorable
Total variance $fill in the blank 5 FavorableUnfavorableFavorable

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