Refer to the data provided in Exercise 10-28.
Required:
Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches.

Data From Exercise 10-28:

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

            Leather (3 strips @ $4)             $12.00
            Direct labor (0.75 hr. @ $12)        9.00
            Total prime cost                        $21.00

During the year, Bolsa produced 40,000 belts. Actual leather purchased was 122,000 strips at $3.96 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 31,200 hours at $12.50 per hour.
Required:
  1.  Compute the costs of leather and direct labor that should be incurred for the production of 40,000 leather belts.
  2.  Compute the total budget variances for materials and labor.