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 @ $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 271,500 strips at $4.80 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 78,800 hours at $17.50 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. Enter favorable values as negative numbers and unfavorable values as positive numbers. Price variance $1,563,84 X Favorable Usage variance $ 99,000 X Favorable Total variance 515,250 X Favorable