Problem 1: Multiple Choice - (28 points) Choose the best answer by circling the appropriate letter (A to D) 1. A favorable labor rate variance indicates that A) actual hours exceed standard hours. B) standard hours exceed actual hours. the actual rate exceeds the standard rate. the standard rate exceeds the actual rate. 2, An inventory management system that relies primarily on physical counts of inventory is said to be using the A) perpetual method.. B) warehouse-control method. C) periodic method. D) last-in method. BMW 3. Accounts receivable represents A) amounts owed by the organization to outsiders. 3) amounts owed to the organization by outsiders