Jorgensen Company Has Determined the Following Variances at the End

Multiple Choice

Jorgensen Company has determined the following variances at the end of the current year:
Variances
$\begin{array} { l } \text { Production Volume Variance}&\$ 200,000 \text { Favorable } \\ \text {Flexible Budget Variance for Direct Materials }&\$ 10,000 \text { Unfavorable }\\ \text {Flexible Budget Variance of Direct Labor }&\$ 20,000 \text { UnFavorable } \\ \text { Flexible Budget Variance for Fixed Overhead}&\$ 3,000 \text { Favorable } \\ \text {Flexible Budget Variance for Variable Overhead }&\$ 2,000 \text { UnFavorable } \\\end{array}$

Before consideration of the above variances,the company has operating income of $1,000,000.What is the operating income after considering the above variances?

A) $986,000
B) $989,000
C) $1,189,000
D) $1,200,000