Income Statement Indicating Standard Cost Variances

The following data were taken from the records of Griggs Company for December:

Administrative expenses	$100,800
Cost of goods sold (at standard)	550,000
Direct materials price varianceunfavorable	1,680
Direct materials quantity variancefavorable	(560)
Direct labor rate variancefavorable	(1,120)
Direct labor time varianceunfavorable	490
Variable factory overhead controllable variancefavorable	(210)
Fixed factory overhead volume varianceunfavorable	3,080
Interest expense	2,940
Sales	868,000
Selling expenses	125,000

Prepare an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank.

Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 550,000 Cost of goods sold (at standard) Direct materials price variance-unfavorable Direct materials quantity variance-favorable 1,680 (560) Direct labor rate variance-favorable (1,120) Direct labor time variance-unfavorable 490 Variable factory overhead controllable variance-favorable (210) Fixed factory overhead volume variance-unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank. Griggs Company Income Statement For the Month Ended December 31 Sales 868,000 Cost of goods sold-at standard 550,000 Gross profit-at standard 318,000 Unfavorable Favorable Variances from standard cost: Direct materials price 1,680 X Direct materials quantity -560 X Direct labor rate -1,120 X -490 Direct labor time Variable factory overhead controllable 210 X 3,080 X Fixed factory overhead volume Net variance from standard cost-unfavorable 3,360 Gross profit 314,640 Operating expenses: Selling expenses 125,000 Administrative expenses 100,800 225,800 Total operating expenses Income from operations 88,840 Other expense: Interest expense 2,940 Operating income 85,900