Labor Variances 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) Direct labor (0.75 hr. $12) Total prime cost During the first month of the year, 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 abor was 78,200 hours at $12.50 per hour. Required 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches. Rate variance Efficiency variance $ Total variance $12.00 9.00 $21.00 Unfavorable Unfavorable Unfavorable