Question

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:

Sales revenue variance	​$4,100	F
Direct materials cost variance	30	U
Direct materials efficiency variance	300	F
Direct labor cost variance	65	U
Direct labor efficiency variance	10	F
Variable overhead cost variance	300	U
Variable overhead efficiency variance	80	F
Fixed overhead cost variance	430	U
Fixed overhead volume variance	100	F

What is the standard net operating​ income?

Answer 1

Answer:

Particulars	Add or less	Amount in $
Sales	-	8,00,000
cost of goods sold	Less	-3,82,000
selling and distribution expenses	Less	-1,05,000
Sales revenue variance (favorable)	Add	4,100
Direct material cost (unfavorable)	Less	-30
Direct material efficiency (favorable)	Add	300
Direct labor cost (unfavorable)	Less	-65
Direct labor efficiency (favorable)	Add	10
Variable overhead cost (unfavorable)	Less	-300
Variable overhead efficiency (favorable)	Add	80
Fixed overhead cost (unfavorable)	Less	-430
Fixed overhead volume (favorable)	Add	100
Standard net operating income		3,16,765