Mary's Fine Fashions Mary's Fine Fashions Manufactures and Sells Various

Multiple Choice

Mary's Fine Fashions Mary's Fine Fashions manufactures and sells various types of women's clothing. At the end of 2011, Mary had estimated for the production and sale of 25,000 short-sleeve shirts. Each shirt has a standard calling for 2.5 yards of direct material at a standard rate of $1.25 per yard and 12 minutes of direct labor time at a standard rate of $.20 per minute. During 2012, the company actually produced and sold 23,000 shirts. These 23,000 shirts had an actual direct materials cost of $77,142 (59,340 yards at $1.30 per yard) and an actual direct labor cost of $63,250 (253,000 minutes at $.25 per minute) . Each shirt sells for $20.
Refer to the Mary's Fine Fashions information above. What is Mary's net operating income based on a flexible budget?

A) $332,925
B) $361,875
C) $347,400
D) $307,400