11Alpine Productions uses a standard costing system for recording transactions; they also prepare an internal-use income statement using standard cost methodology. At the end of 2011, Alpine reported the following data:
Sales revenues:$500,000
Cost of goods sold (standard costing)$382,500
Marketing & admin expenses$105,000
Variances:
Sales revenue
|
$4,000
|
F
|
Direct materials price variance
|
20
|
U
|
Direct materials efficiency variance
|
300
|
F
|
Direct labor price variance
|
75
|
U
|
Direct labor efficiency variance
|
10
|
F
|
Variable overhead spending variance
|
225
|
U
|
Variable overhead efficiency variance
|
80
|
F
|
Fixed overhead spending variance
|
420
|
U
|
Fixed overhead volume variance
|
110
|
F
|
Using standard costing methodology, the net operating income is:
A) $14,990.
B) $16,260.
C) $13,975.
D) $87,740.
12Atlas Manufacturing is closing the year 2012. Atlas uses standard costing methodology in its accounting system and for internal performance reporting. Atlas’s ending balances are shown here:
|
|
Sales revenue variance
|
|
Cost of goods sold (standard)
|
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Selling & admin expense
|
|
150,000
|
|
4,000
|
|
|
78,000
|
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60,000
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct materials price variance
|
|
Direct materials efficiency variance
|
|
Direct labor price variance
|
|
Direct labor efficiency variance
|
300
|
|
|
|
25
|
|
800
|
|
|
70
|
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|
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Variable overhead spending variance
|
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Variable overhead efficiency variance
|
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Fixed overhead spending variance
|
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Fixed overhead volume variance
|
200
|
|
|
|
800
|
|
|
90
|
|
15
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Using the format below, please prepare a statement of operating income.
Sales revenue (standard)
|
|
|
|
Sales revenue variance
|
|
|
|
Sales revenue (actual)
|
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|
|
Cost of goods sold (standard)
|
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|
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Manufacturing variances
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|
(Credit balances in parentheses)
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Direct materials price variance
|
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Direct materials efficiency variance
|
|
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Direct labor price variance
|
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Direct labor efficiency variance
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Variable overhead spending variance
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Variable overhead efficiency variance
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Fixed overhead spending variance
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Fixed overhead volume variance
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Cost of goods sold (actual)
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Gross profit
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Selling & admin. expenses
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Net operating income/(loss)
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23. 6-13Alpine Productions uses a standard costing system for recording transactions; they also prepare
an internal-use income statement using standard cost methodology. At the end of 2011, Alpine
reported the following data:
Sales Revenues:$500,000
Cost of Goods Sold (standard costing)$382,500
Marketing & Admin expenses$105,000
Variances:
Sales revenue
|
$4,000
|
F
|
Direct materials price variance
|
20
|
U
|
Direct materials efficiency variance
|
300
|
F
|
Direct labor price variance
|
75
|
U
|
Direct labor efficiency variance
|
10
|
F
|
Variable overhead spending variance
|
225
|
U
|
Variable overhead efficiency variance
|
80
|
F
|
Fixed overhead spending variance
|
420
|
U
|
Fixed overhead volume variance
|
110
|
F
|
Using the format below, please prepare a statement of operating income.
Sales revenue (standard)
|
|
|
|
Sales revenue variance
|
|
|
|
Sales revenue (actual)
|
|
|
|
Cost of goods sold (standard)
|
|
|
|
Manufacturing variances
|
|
|
|
(Credit balances in parentheses)
|
|
|
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Direct materials price variance
|
|
|
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Direct materials efficiency variance
|
|
|
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Direct labor price variance
|
|
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Direct labor efficiency variance
|
|
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Variable overhead spending variance
|
|
|
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Variable overhead efficiency variance
|
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Fixed overhead spending variance
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Fixed overhead volume variance
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Cost of goods sold (actual)
|
|
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|
Gross profit
|
|
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|
Marketing and admin. expenses
|
|
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Net operating income/(loss)
|
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|