Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has 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 287,500 strips at $3.90 per str There were no beginning or ending inventories of leather. Actual direct labor was 78,700 hours at $13.50 per hour. Required: 1. Break down the total variance for labor into a rate variance and a efficiency variance using the columnar and formula approaches. Rate variance Efficiency variance Total variance 2. CONCEPTUAL CONNECTION ac nart of the inu 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 278,500 strips at $3.30 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 80,000 hours at $13.00 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 194,950 Favorable Usage variance 10,000 Unfavorable Total variance 204,950 Favorable 2. CONCEPTUAL CONNECTION Suppose the Boise plant manager investigates the materials variances and is told by the purchasing manager that a cheaper source of leather strips had been discovered and that this is the reason for the favorable materials price variance. Quite pleased, the purchasing manager suggests that the materials price standard be updated to reflect this new, less expensive sum of leather strim