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: 2.75 hours per unit at $16.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $198,000 (budgeted and actual amount) Actual yards used: 43,240 yards hours at $6.25 per yard Actual hours worked: 23,400 hours at $15.90 per hour Actual total factory overhead: $236,500 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 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 Unfavorable Amount Favorable Amount 1,512 14,970 Factory overhead volume 8,800 Net variance from standard cost-unfavorable $ -2,162 -2,340 -4,000 Amount $ 1,075,000 -657,130 $ 417,870 -16,780 Previous Next Email Instructor Submit Test for Grading