1. Within a relevant range, when the level of activity increases, ________.

Group of answer choices

fixed costs per unit remain the same

variable costs per unit remain the same

fixed costs in total increase as well

variable costs in total remain the same

2.

Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs:

Direct Labor Costs

DL Costs	Rate	Hour
Standard	$15.60	0.80
Actual	$17.00	0.60

Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units.

Determine the direct labor time variance.

Group of answer choices

-$18,720 favorable

-$13,680 favorable

$13,680 unfavorable

$18,720 unfavorable

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