Eastern Outfitters' revenue and expense information for April follows:
Sales revenue at standard cost .................................................................. $558,000
Flexible budget sales revenue variance ....................................................... $ 3,500
Sales revenue at actual .............................................................................. $561,500
Cost of goods sold (standard)................................................................... $344,500
Direct materials price variance.................................................................. $ 2,800 F
Direct materials quantity variance............................................................. $ 6,100 F
Direct labor rate variance.......................................................................... $ 4,400 U
Direct labor efficiency variance................................................................. $ 2,200 F
Variable overhead rate variance................................................................ $ 2,000 U
Variable overhead efficiency variance...................................................... $ 3,000 F
Fixed overhead budget variance............................................................... $ 1,800 U
Fixed overhead volume variance............................................................... $ 5,000 F
Requirement
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.