COSTO Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor Leather (12 strips $20) Direct labor (10 hours $12) Total prime cost $240 $120 $360 During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour. Compute the costs of leather and direct labor that should have been incurred for the production of 125 boots a. $36,000 and $36,000 b. $30,000 and $15,000 c. $46,500 and $37.500 d. $37,200 and $20,000 Previous Next >