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 54) $12.00 Direct labor (0.75 hr. $12) 9.00 Total prime cost 521.00 During the first month of the year, the Bolse plant produced 92,000 belts. Actual leather purchased was 270,500 strips at $3.00 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 79,900 hours at $14.50 per hour. Required: