Onturon Corporation produces high-quality leather beits. The compary/s plant in Boise uses a standard conting svstem and has set the following standards for materiais and tabor: During the first month of the year, the Bolse plant produced 92,000 belts, Actual leather purchased was 287,500 strips at 53.60 per strip. There were no beginning or ending inventories of leather. Actual dirlict labor was 80,100 hours at $13.00 per hour. Required: 1. Break down the total variance for labor into a rate variance and on efficiency variance using the columnar and formula approaches. 2. CONCEPTUAL CONNECTION. As part of the investigation of the unfavarable variances, the plant manager interviews the production managet, The production manager complains strangly about the quality of the leather strips. He indicates that the strips are of lower quality than usuat and that workers have to be more carefut to avoid a beit with cracks and mare time is required. Also, even with extra care, many beits have to be discarded and new ones produced to replace the rejects. This replaceinent work has also produced some overtime demands. What corrective action should the plant manager take? 1. Return to suppliers that provide the quality corresponding to the price standard. 2. Emplay more skilled labor at a cost lesser than the savings made by buying cheap material and improve the product quality. 3. There is no need to change anything. The sales are not affected by this low quality of raw material