Materials Variances Materials Variances Mahn Corporation produces high-quality leather belts. The company uses a standard costing system and has set the following standards for materials and labour: $12.00 Leather (3 strips @ $4) Direct labour (0.75 hr. @ $12) Total prime cost 9.00 $21.00 During the first month of the year, Mahn produced 92,000 belts. Actual leather purchased was 287,000 strips at $4.50 per strip. There were no beginning or ending inventories of leather. Actual direct labour was 79,600 hours at $14.00 per hour. Required Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches. If required, enter favourable values as negative numbers. Price variance Unfavourable Usage variances Unfavourable Total variance Unfavourable