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 287,500 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 78,200 hours at $12.50 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.

Price variance $

Usage variance $

Total variance $