Standard Faucets uses standard costing and recorded the following data for the month of August:
• Standard direct labor rate $10.00 per hour
• Standard hours allowed for actual production 20,000
• Actual direct labor rate $10.50 per hour
• Labor efficiency variance $5,000 favorable

The labor rate variance for August is:
a. $9,750 favorable.
b. $10,000 unfavorable.
c. $9,750 unfavorable.
d. $10,000 favorable.

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.