Reference no: EM132590531

Alpine Production uses a standard cost system for recording transactions. Alpine reported the following data for the year ended Dec 31:

Sales revenues: $550,000
Cost of goods sold (standard costing): $382,500
Selling & administrative expenses: $90,000

Variances:

Sales revenue variance $4,300 F
Direct materials cost variance 40 U
Direct materials efficiency variance 300 F
Direct labor cost variance 75 U
Direct labor efficiency variance 10 F
Variable overhead cost variance 275 U
Variable overhead efficiency variance 80 F
Fixed overhead cost variance 410 U
Fixed overhead volume variance 130 F

Question 1: What is the net operating income on a standard cost income statement?

Option A. $171,520

Option B. $81,520

Option C. $77,500

Option D. $77,220