31. The Pathways Company has an asset turnover of 3 times, using assets of $50,000. The company also has a return on investment (ROI) of 20%. If the residual income was $4,250, what was the company's cost of capital?

11.5%.

20.0%.

3.0%.

8.5%.

32.

Denominator hours for May		19,500
Actual hours worked during May		17,600
Standard hours allowed for May		13,800
Flexible budget fixed overhead cost	$	58,500
Actual fixed overhead costs for May	$	62,400

What is the fixed overhead spending (budget) variance for May?

$1,900 unfavorable.

$3,800 favorable.

$3,900 unfavorable.

$3,800 unfavorable.

33. The Fellowes Company has developed standards for labor. During June, 80 units were scheduled and 105 were produced. Data related to labor are:

Standard hours allowed		4	hours per unit
Standard wages allowed	$	5.00	per hour
Actual direct labor		430	hours (total cost $2,107)

What is the labor rate variance for June?

$43 unfavorable.

$43 favorable.

$42 unfavorable.

$42 favorable.