Materials 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) $12.00 Direct labor (0.75 hr. $12). Total prime cost 9.00 $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 Favorable 69,000 X Usage variance $ Unfavorable 115,000 X Total vanance Favorable 46,000 X aterials variances and is told by the purchasing manager that a cheaper source of leather strips