27. Michael Corporation manufactures railroad cars, which is its only product.

The standards for railroad cars are as follows:

Standard labor hours per car 20

Standard labor cost per direct labor hour $25.00

During the month of March, the company produced 1500 railroad cars. Related production data

for the month follows:

Actual direct labor hours 40,000

Actual direct labor total cost $865,00

What is the direct labor efficiency variance for the month?

A) $250,000 unfavorable

B) $500,000 unfavorable

C) $385,000 favorable

28. Please use the information provided in question 27.

What is the direct labor rate variance for the month?

A) $385,000 favorable

B) $385,000 unfavorable

C) $135,000 unfavorable

D) $134,800 favorable