1. The cost of producing 1000 handbags is follows:

Direct materials: $ 18,500

Direct labor: $10,500

Factory overhead: $6,500

Selling and administrative: $18,000

Management desires a profit of 20% of invested capital of $260,000 What is the product selling price?

Select one:

A.

$105.50

B.

$110

C.

$95

D.

$100

2. A factory employee works 32 hours at $10/hr. Standard direct labor cost was $300. The total direct labor variance is:

Select one:

A.

$20 favorable

B.

$20 unfavorable

C.

$320 favorable

D.

$320 unfavorable