8

QUESTION 8 The actual cost of direct labor per hour is $6.30 and the standard cost of direct labor per hour is $6.00. Two budgeted direct labor hours are allowed per finished good. During the current period, 250 finished goods were produced using 470 direct labor hours. What is the labor efficiency variance? O $180 favorable O $141 unfavorable O $180 unfavorable O $39 favorable $141 favorable QUESTION 9 Magic Mountain is a magicians performance hall/dining room in California. It measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes: Fixed Element per Month Variable Element per Customer Served Revenue $4,300 Employee salaries and wages $58, 100 $1,200 Travel expenses $700 Other expenses When the company prepared its planning budget at the beginning of February, it assumed that 39 customers would have been served. However, 35 customers were actually served durding February. The revenue in the company's flexible budget for February would have been closest to: O $153,200 O $167,700 O $150,500