1)

Baxter Company sold 8,600 units at $125 per unit. Normal production is 9,000 units.

Standard: 5 yards per unit at $6.30 per yard Standard: 2.25 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $211,50 (budgeted and actual amount)

Actual yards used: 43,240 yards at $6.25 per yard Actual hours worked: 19,100 hours at $14.90 per hour Actual total factory overhead: $235,500

Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.

Baxter Company Income Statement Through Gross Profit For the Year Ending December 31

Line Item Description	Unfavorable Amount	Favorable Amount	Amount
Sales			?
Cost of goods soldat standard			?
Gross profitat standard			?
Less variances from standard cost
Direct materials price		?
Direct materials quantity	?
Direct labor rate		?
Direct labor time		?
Factory overhead controllable	?
Factory overhead volume	?
Net variance from standard costunfavorable			?
Gross profitactual			?