1. Steward Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials. 9.3 pounds $8.00 per pound $74.40 Direct labor........ 0.4 hours $19.00 per hour $7.60 Variable overhead 0.4 hours $7.00 per hour $2.80 The company reported the following results concerning this product in August. Originally budgeted output.. 3,000 units Actual output......... 3,100 units Raw materials used in production 30,370 pounds Purchases of raw materials 33,900 pounds Actual direct labor-hours.. 1,340 hours Actual cost of raw materials purchases....... $264,420 Actual direct labor cost............ $27,872 Actual variable overhead cost. $8,844 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. 2. Preacher Wares is a division of a major corporation. The following data are for the latest year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return.... $14,720,000 $1,000,960 $4,000,000 14% Required: a. What is the division's margin? b. What is the division's turnover? c. What is the division's return on investment (ROI)? d. What is the division's residual income