Calgary Industries is preparing a budgeted income statement for 2018. Predicted sales for the year are $720,000 and cost of goods sold is 40% of sales. The expected selling expenses are $80,000 and the expected general and administrative expenses are $89,000, which includes $22,000 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:

Multiple Choice

• $432,000.

• $184,100.

• $263,000.

• $85,500.

• $78,900.

  Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $16 per hour. During August, Hassock produced 15,000 units and used 60,170 hours of direct labor at a total cost of $960,720. What is Hassocks labor rate variance for August?

  Multiple Choice

• $1,994 favorable.

• $2,000 unfavorable.

• $2,000 favorable.

• $3,994 favorable.

• $1,994 unfavorable.