Jf cola is currently considering whether to discontinue production of its diet drink. the diet drink product had the following product loss last year: sales revenue $260,000 cost of goods sold (160,000) gross profit 100,000 operating expenses (120,000) operating loss $(20,000) 25% of the cost of goods sold represents fixed manufacturing overhead costs and 30% of the operating expenses are fixed. only $60,000 of the fixed costs will be eliminated if the diet line is discontinued.

Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.