Question - 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 @ $4)$12.00Direct labor (0.75 hr. @ $12)9.00Total prime cost$21.00

During the first month of the year, Boise plant produced 92,000 belts. Actual leather purchased was 297,500 strips at $3.60 per strip.

There were no beginning or ending inventories of leather. Actual direct labor was 78,400 hours at $15.00 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 favorable values as negative numbers.