Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year ended December 31:

Sales revenues: $ 500 comma 000$500,000

Cost of goods sold (standard costing): $ 382 comma 500$382,500

Selling & admin expenses: $ 80 comma 000$80,000

Variances:

Sales revenue variance	$ 4 comma 000$4,000	F
Direct materials cost variance	1010	U
Direct materials efficiency variance	350350	F
Direct labor cost variance	6565	U
Direct labor efficiency variance	1010	F
Variable overhead cost variance	225225	U
Variable overhead efficiency variance	9090	F
Fixed overhead cost variance	430430	U
Fixed overhead volume variance	120120	F

What is the standard net operating income?

A.

$41,340

B.

$37,500

C.

$37,340

D.

$121,340