5. Wimberley Outdoors produces backpacks. The direct labor standard for a backpack is 1 hour at a cost of $20 per direct labor hour. During the month of October, Wimberley Outdoors used 2200 direct labor hours to produce 2100 backpacks. Total direct labor cost for October was $39,600. What is the direct labor rate variance for October? A) $4200 favorable B) $4400 unfavorable C) $4200 unfavorable D) $4400 favorable

6. Which of the following situations may lead to an unfavorable direct materials price variance? A) Raw materials waste was substantially reduced in the factory. B) The purchasing manager was able to negotiate a lower purchase price for raw materials. C) The factory workers union negotiated a higher rate for workers. D) The purchasing manager paid a premium price for a higher quality of raw materials.