1. If selling price is $40/unit and variable cost is $25/unit, what would the Margin of Safety be if we were currently selling 5,000 units?

A.$100,000

B.$75,000

C.$144,000

D.$200,000

2. We expect to pay our employees $20 per hour and spend 3 hours building a computer. We build 100 computers using a total of 400 hours and paying total wages of $10,000. Our LaborRate Variancewould be:

A.$2,000 favorable

B.$2,000 unfavorable

C.$1,500 favorable

D.$1,500 unfavorable

2. We expect to use 8 pounds of material in making a computer. Each pound of Material is expected to cost $5. We produce 100 units that use 7 pounds of material that cost $6 per pound. The MaterialsQuantity Variancewould be:

A.$500 unfavorable

B.$500 favorable

C.$600 unfavorable

D.$600 favorable