The May 2010 revenue and cost information for Boise Outfitters, Inc., follows:

Requirement 

1. Prepare a standard cost income statement for management through gross profit.
Report all standard cost variances for management’s use. Has management done a good or poor job of controlling costs? Explain.

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Sales revenue $ 580,000 Cost of goods sold (standard) 344,000 Direct materials price variance 900 F Direct materials efficiency variance 6,500 F Direct labor price variance 4,500 U Direct labor efficiency variance 2,200 F Overhead flexible budget variance 3,100 U Production volume variance 8,400 F