Gersbach Corporation Manufactures One Product

Multiple Choice

Gersbach Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The company has provided the following information: The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
The net operating income for the year is closest to:

A) ($2,349)
B) $85,915
C) $70,200
D) $145,368