Woodhead Inc. manufactures one product. It does not maintain any beginning or ending 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. Its standard cost per unit produced is $37.45. During the year, the company produced and sold 24,400 units at a price of $47.40 per unit and its selling and administrative expenses totaled $92,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year: Materials price variance$8,760FMaterials quantity variance$550ULabor rate variance$27,885ULabor efficiency variance$17,200FFixed manufacturing overhead budget variance$17,400FFixed manufacturing overhead volume
variance$18,900FThe net operating income for the year is closest to:
A. $150,780
B. $184,605
C. $151,026
D. $259,859
Answer: B
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