19. The following standards for variable overhead have been established for a company that makes only one product:

Standard hours per unit of output	4.4	hours
Standard variable overhead rate	$16.00	per hour

The following data pertain to operations for the last month:

Actual hours	8,100	hours
Actual total variable overhead cost	$124,990
Actual output	1,820	units

Required:
a.	What is the variable overhead rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

24. The management of Fannin Corporation is considering dropping product H58S. Data from the company's accounting system appear below:

Sales	$950,000
Variable expenses	$391,000
Fixed manufacturing expenses	$373,000
Fixed selling and administrative expenses	$253,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $239,000 of the fixed manufacturing expenses and $200,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped?

a. Overall net operating income would decrease by $67,000.

b. Overall net operating income would increase by $67,000.

c. Overall net operating income would increase by $120,000.

d. Overall net operating income would decrease by $120,000.

25. Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

Investment required in equipment	$410,000
Annual cash inflows	$60,000
Salvage value	$0
Life of the investment	16 years
Required rate of return	9%

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is closest to:

a. 0.1 years

b. 1.0 years

c. 4.8 years

d. 6.8 years