Caterlebe Productions Uses a Standard Costing System

question 27

Essay

Caterlebe Productions uses a standard costing system. At the end of 2015, the following details are found in their books.
Sales Revenues: $750,000
Cost of Goods Sold (standard costing): $400,500
Marketing & Admin expenses: $150,000
Variances: Calculate the standard net operating income.

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Definitions:

Lignin

A complex organic polymer deposited in the cell walls of many plants, making them rigid and woody, and contributing to the structural integrity of the plant.

Parenchyma Cells

Fundamental tissue composed of thin-walled cells that function in photosynthesis, storage, and as the bulk of ground and vascular tissues.

Starch Grains

Microscopic granules consisting of starch, stored as an energy reserve within the cells of plants, especially within tubers and seeds.

Oil Droplets

Tiny globules of oil, which can be found suspended in various colloids, including biological cells or in culinary emulsions.