Baxter Company sold 9,000 units at $145 per unit. Normal production is 9,400 units.

Standard: 5 yards per unit at $6.30 per yard Standard: 2.00 hours per unit at $16.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $206,800 (budgeted and actual amount)

Actual yards used: 45,760 yards hours at $6.25 per yard Actual hours worked: 17,750 hours at $15.90 per hour Actual total factory overhead: $236,000

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
Cost of goods soldat standard
Gross profitat 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 costunfavorable
Gross profitactual