He following information describes a company’s direct labor usage in a recent period. actual direct labor hours used (ah) 59,000 actual direct labor rate per hour (ar) $ 15 standard direct labor rate per hour (sr) $ 13 standard direct labor hours for units produced (sh) 60,600 ah = actual hours sh = standard hours ar = actual rate sr = standard rate compute the direct labor rate and efficiency variances for the period and classify each as favorable, unfavorable or no variance.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan