River is a musician who wants to buy a $2,500 microphone. He can't get a bank loan because he has no credit history. Which of these will be a better choice for him, and why: 1) A $2,500 credit card with 24.99%
annual interest rate. 2) A lay-away program at the store where he can put down $250 now and has 12
months to pay in full. 3) To borrow $2,500 from a friend and then pay them $250 a month for 12 months.

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: