1- Karl Marx Corporation's contribution margin ratio is 35% and its fixed monthly expenses are $20,000. If the company's sales for a month are $98,000, assume that the fixed monthly expenses do not change. What is the best estimate of the company's net operating income?

2-

Taylor Corporation applies manufacturing overhead to products on the basis of standard machine-hours.

• The company's standard variable manufacturing overhead rate is $1.80 per machine-hour.
• The actual variable manufacturing overhead cost for the month was $13,080.
• The original budget for the month was based on 7,100 machine-hours.
• The company actually worked 7,210 machine-hours during the month.
• The standard hours allowed for the actual output of the month totaled 7,070 machine-hours.

What was the variable overhead quantity (efficiency) variance for the month?