Figure 10-3

Multiple Choice

Figure 10-3. Bortello Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
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.
Refer to Figure 10-3.Compute the total budget variances for materials and labor,respectively.

A) $2,800 F and $7,500 F
B) $2,800 F and $7,500 U
C) $2,800 U and $7,500 U
D) $2,800 U and $7,500 F