Assume the following: The standard labor rate is $8.50 per hour. The standard quantity of labor allowed per unit is 4 hours. The company paid $342,000 for 38,000 hours of labor. The company actually produced 10,000 units of finished goods during the period. What is the labor efficiency variance?

ssume a retailing company has two departments—Department A and Department B. The company’s most recent contribution format income statement follows:    Total   Department A   Department B Sales $ 800,000     $ 350,000       $ 450,000     Variable expenses   320,000       120,000         200,000     Contribution margin   480,000       230,000         250,000     Fixed expenses   400,000       140,000         260,000     Net operating income (loss) $ 80,000     $ 90,000       $ (10,000 )   The company says that $130,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 8%. What is the financial advantage (disadvantage) of discontinuing Department B? Hint: compare the lost contribution margin to the savings of fixed costs.

Assume a company reported the following results:            Sales $ 400,000     Variable expenses   260,000     Contribution margin   140,000     Fixed expenses   40,000     Net operating income $ 100,000     Average operating assets $ 750,000     The turnover is closest to: 

Net operating income is income before interest and taxes.

Assume a company reported the following results:            Sales $ 400,000     Variable expenses   260,000     Contribution margin   140,000     Fixed expenses   40,000     Net operating income $ 100,000     Average operating assets $ 600,000     If the company’s minimum required rate of return on average operating assets is 16%, its residual income would be:

Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) the total fixed expenses = $20,000, and (4) net operating income = $10,000. Given these four assumptions, unit sales must be:

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:    Per Unit   Per Year   Selling price   $ 200             Direct materials   $ 77             Direct labor   $ 50             Variable manufacturing overhead   $ 10             Sales commission   $ 8             Fixed manufacturing overhead           $ 300,000     Using variable costing, what is the company’s net operating income?

) Fixed costs are irrelevant in decisions about whether a product should be dropped.

Under absorption costing, a company had the following unit costs when 8,000 units were produced. Direct labor $ 8.50 per unit Direct material $ 9.00 per unit Variable overhead $ 6.75 per unit Fixed overhead ($60,000/8,000 units) $ 7.50 per unit Total production cost $ 31.75 per unit Compute the total production cost per unit under variable costing if 25,000 units had been produced.

Runyon Inc. reported the following results from last year’s operations:       Sales $ 16,800,000 Variable expenses   12,230,000 Contribution margin   4,570,000 Fixed expenses   3,394,000 Net operating income $ 1,176,000 ​ The company’s average operating assets were $7,000,000. ​ Last year’s turnover was closest to: