1. Penny Company manufactures only one product and uses a standard cost system. The following information is from Pennys records for May:

Direct labor rate variance	$17,000	favorable
Direct labor time variance	$31,200	unfavorable
Standard hours per unit produced	2.50
Standard rate per hour	$26

During May, the company used 12.50% more hours than the standard allowed.

A. What were the total standard hours allowed for the units manufactured during the month?

___ standard hours

B. What were the actual hours worked?

___ actual hours

C. How many actual units were produced during May?

___ units produced

2. Using the following budgeted information for production of 10,000 and 15,000 units, prepare a flexible budget for 18,000 units.

Production	10,000 units	15,000 units
Expense A	$18,000	$27,000
Expense B	21,000	21,000
Expense C	43,000	43,000

Total expenses $___

3. Fiona cleans offices. She is allowed 5 seconds per square foot. She cleans building A, which is 2,904 square feet, and building B, which is 2,496 square feet. Will she finish these two buildings in an 8-hour shift? Will she have time for a break? Round intermediate calculations to two decimals and final answer to whole number.

(Yes, or No), she (will, or will not) finish in an 8-hour shift, and she (can, or can not) have a break of __ 4 minutes.