Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:

	Black Division	Navy Division
Sales (net)	$500,000	$480,000
Salary expense	36,000	56,000
Cost of goods sold	180,000	167,000

The Black Division occupies 28,000 square feet in the plant. The Navy Division occupies 38,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $58,000. Compute gross profit for the Black and Navy Divisions, respectively.

$144,000; $257,000.

$144,000; $219,000.

$320,000; $313,000.

$116,000; $219,000.

$464,000; $424,000.

A department store has budgeted sales of 12,500 men's suits in September. Management wants to have 6,500 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,500 suits. What is the dollar amount of the purchase of suits if each suit has a cost of $80.

$840,000.

$1,000,000.

$1,360,000.

$1,160,000.

$1,520,000.

Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period.

Direct labor standard (4 hrs. @ $7.00/hr.)	$28.00 per unit
Actual hours worked	11,850
Actual rate per hour	$7.40

$4,740 unfavorable.

$5,600 unfavorable.

$5,600 favorable.

$15,050 favorable.

$4,740 favorable.