19. The Fantastic Tool Company (Mexico Division) produced 100,000 saw blades during the year. It took 2 hours of labor per blade at a rate of $5.50 per hour. However, its standard labor rate is $5.00. Its labor efficiency variance was a favorable $55,000. What is Fantastics standard hours allowed for a volume of 100,000 blades? a. 211,000 hours b. 189,000 hours c. 210,000 hours d. 190,000 hours 20. What is Fantastics labor rate variance? a. $96,875 U b. $105,500 U c. $100,000 U d. $95,000 U 21. Lawn Professionals Corporation wants to produce a new lawnmower. he financial data is as follows: Target price: $350 Target profit: $75 Estimated cost given current product and process designs: $300 Other information: (1) Through reverse engineering, Lawn Professionals found a design improvement that would save $20 per unit. (2) It also found that it could purchase a similar component of a different brand at a lower price, which would save $10 per unit. What is Lawn Professionals target cost? a. $275 b. $300 c. $225 d. $350 22. What is Lawn Professionals new expected profit? a. $75 b. $105 c. $80 d. $50 23. Which budget is used to assesses managerial efficiency? a. operational budget b. capital budget c. static budget d. flexible budget e. cash budget 24. The major differences between activity-based budgeting and traditional budgeting are found in: a. the materials and labor categories. b. the sales and production budgets. c. the cash budget. d. the overhead and selling and administrative categories. e. none of these