Reference no: EM132809676
Problem 1: Total production of 1,000 units of finished goods required 2,000 actual hours at $14 per hour. The standard is 3 hours per unit of finished goods, at a standard rate of $11.50 per hour. Which of the following statements is true?
a) The labor rate variance is $5,000 unfavorable.
b) The labor rate variance is $4,500 favorable.
c) The labor efficiency variance is $5,000 favorable.
d) none of these
e) The labor efficiency variance is $4,500 unfavorable.
Problem 2: If beginning work in process was 500 units, 1,000 additional units were put into production, and ending work in process was 600 units, how many units were completed?
a) 900
b) 1,400
c) none of these
d) 1,000
e) 1,200
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