Standard cost income statement Consider the following information:
|
Cost of goods sold |
$367,000 |
Direct labor efficiency variance |
$18,000 F |
|
Sales revenue |
$550,000 |
Variable overhead efficiency variance |
$ 3,400 U |
|
Direct materials price variance |
$ 8,000 U |
Fixed overhead volume variance |
$12,000 F |
|
Direct materials efficiency variance |
$ 2,800 U |
Marketing and administrative costs |
$77,000 |
|
Direct labor price variance |
$ 42,000 U |
Variable overhead spending variance |
$ 700 F |
|
Fixed overhead spending variance |
$ 1,900 F |
|
|
Requirement
1. Use the above information to prepare a standard cost income statement for Whitmer, as a guide. Remember that unfavorable variances increase cost of goods sold.