Cepeda Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances.
|
Materials price variance |
$1,250 U |
Labor quantity variance |
$ 725 U |
|
Materials quantity variance |
700 F |
Overhead variance |
800 U |
|
Labor price variance |
525 U |
In addition, 8,000 units of product were sold at $8.00 per unit. Each unit sold had a standard cost of $6.00. Selling and administrative expenses were $6,000 for the month.
Instructions
Prepare an income statement for management for the month ended January 31, 2010.