1. A company had a $22,000 favorable direct labor efficiency variance during a time period when the standard rate per direct labor hour was $22 and the actual rate per direct labor hour was $21. If the standard direct labor hours allowed for production were 5,000, what is the amount of actual direct labor hours worked during this period?
6,000 hours 4,000 hours 88,000 hours 110,000 hours 22,000 hours
2. The purchasing department is often responsible for the events that create a direct materials price variance. True or False?