1. The Eagle Company developed the following standards for the manufacture of its product:

• Each unit should have 3 pounds of direct materials purchased at $8 per pound.
• Each unit should be produced in 2 hours at a direct labor cost of $20 per hour.

Actual production was 4,000 units using 11,800 pounds of direct materials at a total cost of $96,300 and required 9,400 direct labor hours at a total cost of $182,600. What was the direct labor total variance? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

2. Austin's Shack sells a variety of sandwiches and snacks. In a recent cost variance report, there was a favorable price variance related to bread. Which of the following may help explain that variance?

-Several packages of bread spoiled due to humidity exposure.

-A crate of bread was accidentally crushed by a forklift.

-The purchasing manager negotiated a discount based on the amount purchased.

-The sales price was increased.