1.) Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product:

Standard Hours	Standard Rate	Standard Cost
1.3 hours	$23.00/hour	$29.90

The total factory wages for June were $1,316,000, 80 percent of which were for direct labor. The company manufactured 35,000 units of product during June using 44,800 direct labor hours.The direct labor efficiency variance for June is:

$16,100 favorable.

$16,450 favorable.

2.) The revenue and spending variances are the differences between the static planning budget and the actual results for the period.

True/False?