Analyzing Operational Changes
Operating results for department B of Shaw Company during 2016 are as follows:

Sales $790,000
Cost of goods sold 480,000
Gross profit 310,000
Direct expenses 215,000
Common expenses 123,000
Total expenses 338,000
Net loss $(28,000)
a. If department B could maintain the same physical volume of product sold while raising selling prices an average of 10% and making an additional advertising expenditure of $53,000, what would be the effect on the department's net income or net loss? (Ignore income tax in your calculations.)

Use a negative sign with your answer to indicate if the effect increases the company's net loss.

b. If Department B increased its selling price by 10%, the effect on net income (loss) would be $

Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is: