EXERCISE 11-2 Residual Income [LO11-2] Juniper Design Ltd. of Manchester, England, is a company specializing in providing design ser- vices to residential developers. Last year the company had net operating income of $600,000 on sales of $3,000,000. The company's average operating assets for the year were $2,800,000 and its minimum required rate of return was 18%. Q/calculate labor rate and ye labor efficiency variances