4) The following labor standards have been established for a particular product: 8.2 hours 15.60 per hour Standard labor-bours per unit of output Standard labor rate s The following data pertain to operations concerning the product for the last month: 10,300 hours Actual hours worked Actual total labor cost Actual output S 159,135 1300 units What is the labor rate variance for the month? A) $195 U B) S195 F C) SIS45 F D) $1545 UU 5) The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is: A) the variable manufacturing cost of the component. B) the fixed manufacturing cost of the component. C) the total manufacturing cost of the component. D) zero. 6) In a flexible budget, what will happen to fixed costs as the activity level increases? A) The fixed cost per unit will remain unchanged. B) The fixed cost per unit will decrease. C) The fixed cost per unit will increase. D) Fixed costs are not included in a flexible budget. 7) The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. If these calculators are upgraded at a total cost of S140,000, they can be sold for a total of $200,000. As an alternative, the ealeulators can be sold in their present condition for $50,000. What is the financial advantage (disadvantage) to the company from upgrading the calculators? A) $10,000 B) (560,000) C) S150,000 D) ($700,000) B-2