Alpine Productions Uses a Standard Costing System for Recording Transactions

question 99

Multiple Choice

Alpine Productions uses a standard costing system for recording transactions. Alpine reported the following data for the year ended December 31, 2015: Sales revenues: $500,000
Cost of goods sold (standard costing) : $382,500
Marketing & admin expenses: $105,000
Variances:
$$\begin{array} { | l | r | l | } \hline \text { Sales Revenue } & \$ 4,000 & \text { F } \\\hline \text { Direct Materials Cost Variance } & 20 & \text { U } \\\hline \text { Direct Materials Efficiency Variance } & 300 & \text { F } \\\hline \text { Direct Labor Cost Variance } & 75 & \text { U } \\\hline \text { Direct Labor Efficiency Variance } & 10 & \text { F } \\\hline \text { Variable Overhead Cost Variance } & 225 & \text { U } \\\hline \text { Variable Overhead Efficiency Variance } & 80 & \text { F } \\\hline \text { Fixed Overhead Cost Variance } & 420 & \text { U } \\\hline \text { Fixed Overhead Volume Variance } & 110 & \text { F } \\\hline\end{array}$$ Calculate standard net operating income.

• A) $14,990
• B) $16,260
• C) $13,975
• D) $87,740

---

Definitions:

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, and solving problems.

Fixation

An unhealthy focus or attachment to an object, person, or concept, which can interfere with normal psychological development or behavior.

Phonemes

The smallest units of sound in a language that distinguish one word from another.

Morphemes

The smallest meaningful units of language that convey specific semantic meaning, which can be words or parts of words.