The May 2008 revenue and cost information for Odessa Outfitters, Inc., follows:

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 $560,000 Cost of goods sold (standard) 342,000 Direct materials price variance 1,000 F Direct materials efficiency variance 6,000 F Direct labor price variance 4,000 U Direct labor efficiency variance 2,000 F Overhead flexible budget variance 3,500 U Production volume variance 8,000 F