Baxter Company sold $8,600$ units at $$130$ per unit. Normal production is $9,000$ units.

Standard: $5$ yards per unit at $$6\mathrm{.}30$ per yard Actual yards used: $43,240$ yards at $$6\mathrm{.}25$ per yard

Standard: $2\mathrm{.}50$ hours per unit at $$15\mathrm{.}00$ Actual hours worked: $21,250$ hours at $$14\mathrm{.}90$ per hour

Standard: variable overhead at $$1\mathrm{.}05$ per unit

Standard: fixed overhead $$198,000($budgeted and actual amount$)$ Actual total factory overhead: $$236,000$

Required:

Prepare an income statement that includes variances for the year ending December $31$ through gross profit for Baxter Company using the above information. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.