Kleiner Merchandising Company Accumulated depreciation$700 Beginning inventory 14,500 Ending inventory 8,700 Expenses 2,400 Net purchases 19,100 Net sales 28,500 Krug Service Company Expenses$9,300 Revenues 33,000 Cash 800 Prepaid rent 720 Accounts payable 200 Equipment 3,100 Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Compute net income for each company.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.