13. A rebuilding them. The company has the choice of either selling 1,000 defective units as scrap or units as they are for $4.00 per unit. Alternatively, it could rebuild them per unit for materials, $2.00 per unit for labor, and $1.50 per unit for company with incremental costs of $1.00 for overhoad, and then sell the rebuilt units for $8.00 each. What should the company do? A. Rebuild the units. B. Sell the units as scrap C. It doos not matter because both altematives have the same resuit. D. Neither sell nor rebuild because both alternatives produce a loss. Instead, the company should store the units permanently E. Throw the units away 14. Chang Industries has 2,000 defective units of product that have already cost $14 saivage company willpurchase the defective units as they are for $5 each. Chang's production Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The incremental income or loss on reworking the unit A. $20,000 income. B. $20,000 loss. C. $12,000 loss. D. $32,000 income. E. $30,000 income. 15. Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August? A. $2,000 favorable. B. $2,104 favorable. C. $2,104 unfavorable. D. $4,160 favorable. E. $2,000 unfavorable