The following data relates to Logan Electric and its Lightbulb Division:

Lightbulb Division sales	$7,500,000
Lightbulb Division operating income	$750,000
Lightbulb Division total assets	$3,000,000
Lightbulb Division current liabilities	$550,000
Corporate target rate of return	15%
Corporate weighted average cost of capital	11%
Corporate effective tax rate	35%

What is the Lightbulb Division's Return on Investment (ROI)?

	18.33%
	25%
	10%
	250%

Question

How is the variable manufacturing overhead efficiency variance calculated?

	The difference between the actual overhead rate and the standard overhead rate multiplied by the standard overhead rate
	The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate
	The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate
	The difference between the standard hours allowed and the actual hours used

Question

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted .5 machine hours per lamp and allocates overhead at a rate of $1.80 per machine hour. Last year, Chilton manufactured 23,000 lamps, used 13,800 machine hours, and incurred actual overhead costs of $15,180.

What was Chilton's variable manufacturing overhead efficiency variance last year?

	$9,660 unfavorable
	$9,660 favorable
	$4,140 unfavorable
	$4,140 favorable