1.Sanchez Company's output for the current period was assigned a $416,000 standard direct labor cost. The direct labor variances included a $10,400 unfavorable direct labor rate variance and a $4,160 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period A. $422,240 B. $426,400 C. $401,440 D. $430,560 E. $409,760

2.Markson Company had the following results of operations for the past year:

Sales (8,000 units at $20.40) $163,200

Variable manufacturing costs $87,600

Fixed manufacturing costs 15,400

Variable selling and administrative expenses 13,600

Fixed selling and administrative expenses 20,400 (137,000)

Operating income $26,200

A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $14.60 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,640 for the purchase of special tools. If Markson accepts this additional business, its profits will:

A. Decrease by $1,640 B. Increase by $2,260 C. Decrease by $5,050 D. Increase by $3,900 E. Decrease by $5,540

Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $6,000,000; sales of $5,975,000; cost of goods sold of $3,425,000; and operating expenses of $1,227,000. Compute the division's return on investment:

A. 22.1% B. 20.5% C. 22.1% D. 15.2% E. 19.5%