1. Total production of 1,000 units of finished goods required 3,900 actual hours at $12 per hour. The standard is 4 hours per unit of finished goods, at a standard rate of $11 per hour. Which of the following statements is true?

a. The labor rate variance is $3,900 favorable.

b. The labor rate variance is $4,000 unfavorable.

c. The labor efficiency variance is $1,100 favorable.

d. The labor efficiency variance is $1,100 unfavorable.

e. None of these.

2. If beginning work in process was 600 units, 1,400 additional units were put into production, and ending work in process was 500 units, how many units were completed?

a. 500

b. 900

c. 1,400

d. 2,000

e. None of these.

3. Frick Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 10,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. The cost per equivalent unit of material is:

a. $1.00 if total material cost is $3,000.

b. $1.00 if total material cost is $5,000.

c. $1.00 if total material cost is $8,000.

d. $1.00 if total material cost is $10,000.

e. None of these.

4. Assume that actual overhead consisted of $30,000 for indirect labor, $20,000 for indirect material, and $10,000 for depreciation of factory equipment. Based on the preset rates, $65,000 of overhead was applied to work in process.

a. Overhead is under applied.

b. This is viewed as an unfavorable situation.

c. There will be a $5,000 debit balance in Factory Overhead.

d. All of the above.

e. None of these