1. Standard quantities per unit of product WD40 include 5 kilos of direct materials and 45 minutes of direct labor. The standard price for direct materials is $14 per kilo. The direct labor rate is unknown. The standard factory overhead rate is $10 per direct labor hour. The total standard cost per unit of product WD40 is $103. Calculate the standard rate per hour of the direct labor used manufacture product WD40 (round to nearest $0.00).

2. Dalmatian Bus Co. is considering disposing of a bus (asset).Dalmatian can sell the bus through a broker for $40,000 less a 5% broker commission. Alternatively, TerrierTransit, Inc. has offered to lease the bus for five years for a total of $60,000. If the bus is leased to Terrier, Dalmatian will incur maintenance, insurance, and licenseexpenses estimated at $4,600 per year over the five-year lease period. At lease end, the bus is expected to have no residual value. Calculate the increase or decrease in net income for 5 years if the bus is leased to Terrier rather than selling it.