1.

Shyson Corporation manufactures cargo containers, which is its only product. The standards for cargo containers are as follows:

Standard tonnes of direct material (steel) per container	3
Standard cost per tonne of steel	$15.00
Standard labour hours per container	2.5
Standard labour cost per direct labour hour	$20.00

During the month of September, the company produced 1,000 cargo containers. Related production data for the month follows:

Actual materials purchased and used (tonnes)	3,100
Actual direct materials total cost	$51,150
Actual direct labour hours	2,700
Actual direct labour total cost	$51,550

What is Shyson Corporation's direct labour efficiency variance for the month?

A. $4,000 unfavourable

B. $4,000 favourable

C. $3,815 unfavourable

D. $3,815 favourable

2.

Sable Company is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

Estimated direct labour cost	$500,000
Actual direct labour cost	$450,000
Estimated manufacturing overhead costs	$400,000
Actual manufacturing overhead costs	$350,000
Estimated direct labour hours	250,000
Actual direct labour hours	245,000

If Sable Company uses direct labour hours as the allocation base, what would the predetermined manufacturing overhead rate be?

A. $1.40 per direct labour hour

B. $1.60 per direct labour hour

C. $1.63 per direct labour hour

D. $1.43 per direct labour hour