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 (2 strips @ $5.00) $10.00 Direct labor (0.75 hr. @ $9.00) 6.75 Total prime cost $16.75 During the first month of the year, the Boise plant produced 40,000 belts. Actual leather purchased was 100,000 strips at $3.20 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 35,000 hours at $13.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 40,000 leather belts. Materials Labor $ 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials Labor 3. Conceptual Connection: Would you consider these variances material with a need for investigation