Baxter Company sold 8,600 units at $135 per unit. Normal production is 9,000 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.50 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: 21,250 hours at $15.90 per hour 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 Line Item Description Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Unfavorable Amount Favorable Amount Amount