Baxter Company sold $8,600$ units at $$140$ per unit. Normal production is $9,000$ units. 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.

Baxter Company

Income Statement Through Gross Profit

For the Year Ending December $31$

Standard: $5$ yards per unit at $$6\mathrm{.}30$ per yard

Standard: $3\mathrm{.}00$ hours per unit at $$17\mathrm{.}00$

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

Standard: fixed overhead $$202,500($budgeted and actual amount$)$

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

Actual hours worked: $25,550$ hours at $$16\mathrm{.}90$ per hour

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.