Content Area Baxter Company sold 8,800 units at $125 per unit. Normal production is 9,200 units. Standard: 5 yards per unit at $6.30 per yard Actual yards used: 44,500 yards hours at $6.25 per yard Standard: 2.50 hours per unit at $16.00 Actual hours worked: 21,750 hours at $15.90 per hour Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $207,000 (budgeted and actual amount) Actual total factory overhead: $237,000 Prepare an income statement that includes variances