Answer:
$76,100 net operating loss
Explanation:
The computation of the overall company net operating income (loss) is shown below:
= East sales - east Variable costs - east Traceable fixed costs - east Allocated common corporate costs - west Allocated common corporate costs
= $550,000 - $198,000 - $169,500 - $117,500 - $141,100
= -$76,100 loss
Since the west division is eliminated so all the items would be ignored except Allocated common corporate costs
Answer:
The correct answer is letter "B": less qualified workers.
Explanation:
Direct labor rate variance analyses the current cost of direct labor and the regular cost of direct labor over the same operations period. Direct labor rate variance can be caused due to minimum wage increase, hiring less qualified employees or inappropriate cost budget setting.
