1. Slim Technology Inc. records the following amounts before reconciling the overhead variance.

Applied overhead	$567,000
Actual overhead	555,000
Normal cost of goods sold	701,250

Calculate the cost of goods sold for Slim Technology Inc. after adjusting for any overhead variance.

$677,250

$12,000

$701,250

$689,250

2. Lithium Metals Inc. recorded sales of $200,000 and cost of goods sold of $160,000 in June 20X1. Its selling and administrative expenses totaled $12,000. Calculate the net operating income.

$28,000

$40,000

$52,000

$12,000