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)	$12.00
Direct labor (0.75 hr. @ $12)	9.00
Total prime cost	$21.00

During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 306,500 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 79,800 hours at $14.50 per hour.

Required:

1. Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. Enter favorable values as negative numbers and unfavorable values as positive numbers.

Price variance		FavorableUnfavorableFavorable
Usage variance		FavorableUnfavorableUnfavorable
Total variance		FavorableUnfavorableFavorable

2. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches.

Rate variance		FavorableUnfavorable
Efficiency variance		FavorableUnfavorable
Total variance		FavorableUnfavorableFavorable