1. Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.4	ounces	$	3.00	per ounce	$	19.20
Direct labor		0.4	hours	$	13.00	per hour	$	5.20
Variable overhead		0.4	hours	$	5.00	per hour	$	2.00

The company reported the following results concerning this product in February.

Originally budgeted output		4,800	units
Actual output		4,900	units
Raw materials used in production		30,230	ounces
Actual direct labor-hours		1,910	hours
Purchases of raw materials		32,600	ounces
Actual price of raw materials	$	2.90	per ounce
Actual direct labor rate	$	12.40	per hour
Actual variable overhead rate	$	4.90	per hour

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 variable overhead efficiency variance for February is:

Multiple Choice

• $245 U

• $245 F

• $250 F

• $250 U

2. Chavin Company had the following results during August: net operating income, $220,000; turnover, 5; and ROI 25%. Chavin Company's average operating assets were:

Multiple Choice

• $880,000

• $44,000

• $55,000

• $1,100,000