1) Campbell Companys standard labor rate is $8.00 per hour and standard labor hours for the quantity produced are 1,000 hours. The actual labor rate is $8.50 per hour and the actual hours worked for the period was 1,100 hours. Campbell Companys rate variance is favorable.

2)

If a companys sales are $1 million, variable costs are $400,000, and fixed costs are $300,000, then the contribution margin ratio is 40%.

Group of answer choices

False

True

3)

If the unit selling price is $20, the unit variable cost is $12, and fixed costs are $160,000, then the break-even sales in units would be 20,000 units.

Group of answer choices

False

True

4)

Lawrence Company is planning to sell 200,000 disk-drives at $8 per unit. Assuming that the contribution margin ratio is 25% and this is the break-even point, then fixed costs would be $400,000.

Group of answer choices

True

False