Bortello Corporation Produces High-Quality Leather Boots

Multiple Choice

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.
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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