Alpine Productions Uses a Standard Cost System for Recording Transactions

question 150

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 & administrative expenses: $105,000
Variances:
$$\begin{array} { | l | r | c | } \hline \text { Sales revenue variance } & \$ 4100 & \mathrm {~F} \\\hline \text { Direct materials cost variance } & 30 & \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 300 & \mathrm {~F} \\\hline \text { Direct labor cost variance } & 65 & \mathrm { U } \\\hline \text { Direct labor efficiency variance } & 10 & \mathrm {~F} \\\hline \text { Variable overhead cost variance } & 300 & \mathrm { U } \\\hline \text { Variable overhead efficiency variance } & 80 & \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 430 & \mathrm { U } \\\hline \text { Fixed overhead volume variance } & 100 & \mathrm {~F} \\\hline\end{array}$$ What is the net operating income on a standard cost income statement?

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

---

Definitions:

Reinforcement Value

The subjective attractiveness or desirability of a reward, which influences the likelihood of repeating the behavior that led to that reward.

Observational Learning

The process of learning by watching the actions and outcomes of others' behavior, then imitating or avoiding similar actions.

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit a similar response.

Operant Conditioning

A method of instruction by which a behavior's force is adjusted by means of rewards or consequences.