Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year en Sales revenues: $600,000 Cost of goods sold (standard costing): $382,000 Selling & administrative expenses: $80,000 Variances: Sales revenue variance $4,300 Direct materials cost variance 10 Direct materials efficiency variance 300 F Direct labor cost variance 70 Direct labor efficiency variance 10 Variable overhead cost variance 225 Variable overhead efficiency variance 80 F
Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year en Sales revenues: $600,000 Cost of goods sold (standard costing): $382,000 Selling & administrative expenses: $80,000 Variances: Sales revenue variance $4,300 Direct materials cost variance 10 Direct materials efficiency variance 300 F Direct labor cost variance 70 Direct labor efficiency variance 10 Variable overhead cost variance 225 Variable overhead efficiency variance 80 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1
Transcribed Image Text:Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year ended December 31:
Sales revenues: $600,000
Cost of goods sold (standard costing): $382,000
Selling & administrative expenses: $80,000
Variances:
Sales revenue variance
$4,300
Direct materials cost variance
10
Direct materials efficiency variance
300
F
Direct labor cost variance
70
Direct labor efficiency variance
10
Variable overhead cost variance
225
Variable overhead efficiency variance
80
F
Transcribed Image Text:Variable overhead efficiency variance
80
Fixed overhead cost variance
420
Fixed overhead volume variance
110
F
What is the net operating income on a standard cost income statement?
O A. $138,000
O B. $137,775
OC. $142,075
O D. $222,075
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education