Mccreary Corporation Manufactures One Product

Multiple Choice

Mccreary 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 standard cost of the company's product is $28.00 per unit. During the year the company sold 27,500 units at $36.30 per unit. The actual selling and administrative expenses were $121,000 for the year. 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) $107,250
B) $55,272
C) $118,446
D) $79,816