Alpine Productions Uses a Standard Cost System for Recording Transactions

question 87

Multiple Choice

Alpine Productions uses a standard cost system for recording transactions.Alpine reported the following data for the year ended December 31: Sales revenues: $800,000
Cost of goods sold (standard costing) : $382,000
Selling & admin expenses: $105,000
Variances:
$$\begin{array} { | l | r | c | } \hline \text { Sales revenue variance } & \$ 4,100 & \mathrm {~F} \\\hline \text { Direct materials cost variance } & 30 & \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 300 & \mathrm {~F} \\\hline \text { Direct labor cost variance } & 65 & \mathrm { U } \\\hline \text { Direct labor efficiency variance } & 10 & \mathrm {~F} \\\hline \text { Variable overhead cost variance } & 300 & \mathrm { U } \\\hline \text { Variable overhead efficiency variance } & 80 & \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 430 & \mathrm { U } \\\hline \text { Fixed overhead volume variance } & 100 & \mathrm {~F} \\\hline\end{array}$$ What is the standard net operating income?

• A)$312,665
• B)$316,765
• C)$421,765
• D)$313,000

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Definitions:

Tax Incidence

Examining how a specific tax impacts the allocation of economic well-being among different stakeholders.

Producers

Individuals or businesses involved in the creation of goods or services intended for distribution and sale.

Deadweight Loss

An economic inefficiency that happens when the balance between supply and demand for a good or service isn't met or can't be met.

Tax

A mandatory monetary fee or tax levied by the government on people or organizations to support government spending.