A company manufactures a product. Last month the company budgeted to produce 5,500 units of its most popular product, but actually ended up producing 5,000 units. The standard direct materials for each unit is 70 pounds of material at $2.90 per pound. The actual direct materials bought and used for each unit last month was 74 pounds of material at $3.20 per pound. What is the Efficiency (aka Usage or Quantity) Variance for direct materials for last month?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)