Jorgensen Company Has Determined the Following Variances at the End

question 108

Multiple Choice

Jorgensen Company has determined the following variances at the end of the current year:
Variances
$\begin{array} { l } \text { Production Volume Variance}&\$ 200,000 \text { Favorable } \\ \text {Flexible Budget Variance for Direct Materials }&\$ 10,000 \text { Unfavorable }\\ \text {Flexible Budget Variance of Direct Labor }&\$ 20,000 \text { UnFavorable } \\ \text { Flexible Budget Variance for Fixed Overhead}&\$ 3,000 \text { Favorable } \\ \text {Flexible Budget Variance for Variable Overhead }&\$ 2,000 \text { UnFavorable } \\\end{array}$

Before consideration of the above variances,the company has operating income of $1,000,000.What is the operating income after considering the above variances?

• A) $986,000
• B) $989,000
• C) $1,189,000
• D) $1,200,000

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Definitions:

Indulgent

A parenting style characterized by permissiveness and high levels of warmth and responsiveness, but low levels of discipline or expectations.

Authoritarian

Describes a governing or parenting style characterized by strict adherence to rules, high expectations, and minimal feedback or warmth towards subordinates or children.

Survival Goal

An objective focused on persevering life and meeting basic needs in both animals and humans.

Economic Goal

Objectives or desired outcomes that an economy or individual aims to achieve, often related to growth, stability, and sustainability.