Reference no: EM132591012

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

Sales revenues: $600,000
Cost of goods sold (standard costing): $382, 500
Selling & Administrative expenses: $100,000

Variances:

Sales revenue variance $4,200 F
Direct materials cost variance 30 U
Direct materials efficiency variance 300 F
Direct labor cost variance 80 U
Fixed overhead cost variance 420 U
Fixed overhead volume variance 100 F

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

Option A. $117,230

Option B. $221,430

Option C. $117,500

Option D. $121,430