Solly Corporation produces a product for national distribution. Standards for the product are: Materials: 12 ounces per unit at 60 per ounce. Labor: 2 hours per unit at $8 per hour. During the month of December, the company produced 1,000 units. Information for the month follows: Materials: 14,000 ounces purchased and used at a total cost of $7,700. Labor: 2,500 hours worked at a total cost of $20,625. The labor rate variance is: Multiple Choice $625 U O $500F $500 F $500 U 0 $625F $625 F Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows: 2,500 units 304 $ Annual sales Selling price per unit Variable costs per unit: Production Selling Avoidable fixed costs per year: Production Selling Allocated common fixed corporate costs per year 125 49 $ $50,000 $ 75,000 $55,000 If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common fixed corporate costs would be unaffected by the decision of whether to add the new product. If the new product is added next year, the financial advantage (disadvantage) resulting from this decision would be: Multiple Choice $325,000 0 $200,000 O $145,000 $135,000