Income Statement Indicating Standard Cost Variances Instructions Labels and Amount Descriptions Instructions The following data were taken from the records of Arseneault Company for December: $114,100 634,000 1,830 (720) (1,240) Administrative expenses Cost of goods sold (at standard) Direct materials price variance-unfavorable Direct materials quantity variance-favorable Direct labor rate variance-favorable Direct labor time variance-unfavorable Variable factory overhead controllable variance-favorable Fixed factory overhead volume variance-unfavorable Interest expense Sales Selling expenses 490 (250) 4,190 3,150 996,000 136,500 Required: Prepare an income statement for presentation to management. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon () will automatically appear for you if it is required Income Statement Prepare an income statement for presentation to management. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon () will automatically appear for you if it is required. Arseneault Company Score: 158/170 Income Statement For the Month Ended December 31 1 Sales $996,000.00 2 Cost of goods sold-at standard 634,000.00 3 Gross profit $362,000.00 4 5 Unfavorable Favorable 6 Variance adjustments to gross profit at standard: Direct materials price 7 $1,830.00 Direct materials quantity $(720.00) 9 Direct labor rate (1,240.00) 10 Direct labor time 490.00 11 Variable factory overhead controllable (250.00) 12 Fixed factory overhead volume 4.190.00 13 Less net unfavorable variance from standard 4,300.00 14 Gross profit $357,700.00 15 Selling expenses: 16 Selling expenses 17 Administrative expenses $136,500.00 114,100.00 18 Income from operations $250,600.00 19 Other expense: 20 Interest expense 3,150.00 21 Income before income tax $103,950.00