Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has and labor: During the first month of the year, the Bolse plant produced 32,000 belts. Actual leather purchased was 100,000 strips at $3.50 ending inventories of leather. Actual direct labor was 30,000 hours at $9.00 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 32,000 leather belts. 2. Compute the total budget variances for materials and labor. 3. Conceptual Connection: Would you consider these variances material with a need for investioation