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	Actual yards used: 43,240 yards at $6.25 per yard
Standard: 2.25 hours per unit at $15.00	Actual hours worked: 19,100 hours at $14.90 per hour
Standard: Variable overhead at $1.05 per unit
Standard: Fixed overhead $211,500 (budgeted and actual amount)	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
Sales			$
Cost of goods soldat standard
Gross profitat standard			$
	Unfavorable	Favorable
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			$