1a. 1b.

The Wood Division of Waterway Industries manufactures rubber moldings and sells them externally for $60. Its variable cost is $25 per unit, and its fixed cost per unit is $9. Waterway's president wants the Wood Division to transfer 6000 units to another company division at a price of $34. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $34. $25. $60. $9. The standard rate of pay is $10 per direct labor hour. If the actual direct labor payroll was $39,200 for 4,000 direct labor hours worked, the direct labor price variance is $800 unfavorable. $800 favorable. $1,000 unfavorable. $1,000 favorable