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1. Vanzant produced 1,000 units of output. The production process normally requires 2 hours of labor per unit of output.  The standard labor rate is $10 per hour but Vanzant paid $11 per hour.  Actual hours needed to complete the production process were 1,900.  How much was the labor efficiency variance? (Hint: the answer is a number, then specify favorable or unfavorable.)
2. The Hernandez Company budgeted for an output of 50,000 units.  Budgeted amounts were as follows:  direct material, $100,000; direct labor, $50,000; variable factory overhead, $75,000; and fixed factory overhead, $100,000.  Actual units produced amounted to 60,000.  Actual costs incurred amounted to $110,000 for direct materials, $60,000 for direct labor, $100,000 for variable factory overhead, and $97,000 for fixed factory overhead.  Assuming a flexible budget, how much was the variance between total budgeted production costs and total actual production costs?(Hint: the answer is a number, then specify favorable or unfavorable.)


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