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Alpine Production uses a standard cost system for recording transactions. Alpine reported the following data for the year ended Dec 31:
Sales revenues: $550,000Cost of goods sold (standard costing): $382,500Selling & administrative expenses: $90,000
Variances:
Sales revenue variance $4,300 FDirect materials cost variance 40 UDirect materials efficiency variance 300 FDirect labor cost variance 75 UDirect labor efficiency variance 10 FVariable overhead cost variance 275 UVariable overhead efficiency variance 80 FFixed overhead cost variance 410 UFixed 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
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