Lindsey Corp. uses a standard costing system. For direct labor, the company has a standard as follows per unit: 2 hours @ $14.00 per hour. During April, 1,000 units were produced and 1,900 direct labor hours were worked at a rate of $14.50 per hour. What is the "Labor Rate Variance"? $950 unfavorable. $1,400 unfavorable. $950 favorable. $500 favorable. $500 unfavorable. Lindsey Corp. uses a standard costing system. For direct labor, the company has a standard as follows per unit: 2 hours @ $14.00 per hour. During April, 1,000 units were produced and 1,900 direct labor hours were worked at a rate of $14.50 per hour. What is the "Labor Efficiency Variance"? $1,400 unfavorable. $1,450 unfavorable. $1,000 favorable. $1,450 favorable. $1,400 favorable. The bilge pump product line for Olsen Corp. has been experiencing losses for some time. Which of the following fixed expenses from the most recent income statement would continue even if the bilge pump product line is discontinued? Salary of the product-line manager. Insurance on inventories Purchasing department expenses, allocated on the basis of sales dollars. Advertising for the bilge-pump product line. None of the above as all expenses would be eliminated if the product line is discontinued. Due to erratic sales of its sole product- a high capacity battery for laptop computers - PEMhas been experiencing difficulty for some time. The company's contribution format income statement for the most recent month is given below. Sales (27,000 units at $20 per unit) $540,000 Less: Variable costs Contribution margin Less: Fixed costs Net operating loss $378,000 $162,000 $180,000 $(18,000) Assume that the company automates and variable costs decrease by $3.00 per unit and fixed costs increase by $60,000 per month. What would the net operating income be if 35,000 units are produced and sold next month