1. Mighty cereal, inc., uses a standard cost system or its crunchy pickled cereal. The direct labor standards for pickles are:

0.15 hours of labor time per box at $13.00 per hour.

During January, Mighty worked 8,000 hours of a total costs of $108,000 to produce 60,000 boxes of cereal.

What is mighty's direct labor rate variance?

a. $13,000 unfavorable

b. $13,000 favorable

c. $4,000 favorable

d. $4,000 unfavorable

2. what is mighty's direct labor efficiency variance?

a. $4,000 unfavorable

b. $13,000 unfavorable

c. $4,000 favorable

d. $13,000 favorable