1. Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.

Direct labor standard (4 hrs. @ $6.90/hr.)	$27.60 per unit
Actual hours worked	12,050
Actual rate per hour	$7.30

A. $4,820 unfavorable. B. $5,600 unfavorable. C.$5,600 favorable. D. $13,455 favorable. E. $4,820 favorable.

2. Based on predicted production of 14,000 units, a company anticipates $189,000 of fixed costs and $157,500 of variable costs. The flexible budget amounts of fixed and variable costs for 12,000 units are (Do not round intermediate calculations):

A. $162,000 fixed and $135,000 variable.

B. $189,000 fixed and $135,000 variable.

C. $162,000 fixed and $157,500 variable.

D. $189,000 fixed and $157,500 variable.

E. $135,000 fixed and $189,000 variable.