Baxter Company sold 8,800 units at $130 per unit. Normal production is 9,200 units.

Standard: 5 yards per unit at $6.30 per yard Standard: 2.25 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $207,000 (budgeted and actual amount)

Actual yards used: 44,500 yards hours at $6.25 per yard Actual hours worked: 19,550 hours at $14.90 per hour Actual total factory overhead: $237,500

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.

Line Item Description	Unfavorable Amount	Favorable Amount	Amount
Sales			$Sales
Cost of goods soldat standard			Cost of goods soldat standard
Gross profitat standard			$Gross profitat standard
Less variances from standard cost
Direct materials price	blank	$Direct materials price	blank
Direct materials quantity	$Direct materials quantity	blank	blank
Direct labor rate	blank	Direct labor rate	blank
Direct labor time	blank	Direct labor time	blank
Factory overhead controllable	Factory overhead controllable	blank	blank
Factory overhead volume	Factory overhead volume	blank	blank
Net variance from standard costunfavorable	blank	blank	Net variance from standard costunfavorable
Gross profitactual			$Gross profitactual