Requirement :1 Irving Corporation makes a product with the following standards for direct labor and...
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Accounting
Requirement :1
Irving Corporation makes a product with the following standards for direct labor and variable overhead:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||||
| Direct labor | 0.20 | hours | $ | 20.00 | per hour | $ | 4.00 | ||||
| Variable overhead | 0.20 | hours | $ | 5.60 | per hour | $ | 1.12 | ||||
In November the company's budgeted production was 5,900 units, but the actual production was 5,700 units. The company used 1,640 direct labor-hours to produce this output. The actual variable overhead cost was $8,528. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead rate variance for November is:
Requirement:2
Irving Company has a contribution margin of 15%. Sales are $633,000, net operating income is $94,950, and average operating assets are $143,000. What is the company's return on investment (ROI)?
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