Mover Company has developed the following standards for one of its products:

Direct materials:	7.5 pounds $8 per pound
Direct labor:	2 hours $12 per hour

The following activity occurred during March:

Materials purchased:	5,000 pounds costing $42,500
Materials used:	3,600 pounds
Units produced:	500 units
Direct labor:	1,150 hours at $11.80/hour

The company records materials price variances at the time of purchase. The variable standard cost per unit for materials and labor is:

a.$84

b.$38

c.$98

d.$74

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour. Compute the total budget variances for materials and labor, respectively.

a.$2,800 F and $7,500 U

b.$2,800 U and $7,500 F

c.$2,800 F and $7,500 F

d.$2,800 U and $7,500 U