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: Line Item Description Cost Leather (3 strips @ $6) $18.00 Direct labor (0.75 hr. @ $16) 12.00 Total prime cost $30.00 During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 306,500 strips at $3.90 per strip. There were no beginning or ending inventories of leath