Management is considering the purchase of a new lithography machine. Model 1 will reduce the set up time of Lithography by 10 minutes. Model 2 will reduce the activity time of the Lithography machine by 0.1 minute but setup time will remain unchanged at 50 minutes. Which model will increase the process capacity (meaning, the capacity of the entire process) the most with a batch size of 100 tins?

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: