Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collected on $19,500 of its sales and still owes $25,700 on $85,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $10,000 in salaries. Owners invested $30,000 in the business and $30,000 was borrowed on a five-year note. The company paid $3,400 in interest that was the amount owed for the year, and paid $6,500 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation

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: