Many organizations do not offer merit raises to employees who are at the top of their pay ranges.This can cause morale problems for these employees.What is a potential solution to this issue?

A) Cut pay for employees who are below the top of the pay range.
B) Give merit bonuses to the affected employees.
C) Re-evaluate the performance appraisal methods.
D) Increase minimum pay for all employees.

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The labor rate variance for June is:

A) $1,890 Favorable
B) $2,061 Unfavorable
C) $2,061 Favorable
D) $1,890 Unfavorable