Baxter Company sold $8,600$ units at $$135$ per unit. Normal production is $9,000$ units.

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

Standard: $2\mathrm{.}00$ hours per unit at $$15\mathrm{.}00$

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

Standard: Fixed overhead $$198,000($budgeted and actual amount$)$

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

Actual hours worked: $16,950$ hours at $$14\mathrm{.}90$ per hour

Actual total factory overhead: $$236,000$

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

Sales

Cost of goods sold$-$at standard

Gross profit$-$at 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 cost$-$unfavorable