Income Statement Indicating Standard Cost Variances

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

Line Item Description	Amount
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.

Line Item Description	Amount Unfavorable	Amount Favorable	Amount
Cost of goods sold-at standardFixed factory overhead volumeGross profitSalesSelling expenses			$- Select -
Administrative expensesCost of goods sold-at standardDirect labor rateDirect materials quantitySelling expenses			- Select -
Direct labor rateGross profit-at standardIncome before income taxIncome from operationsSales			$- Select -
Variances from standard cost:
Administrative expensesCost of goods sold-at standardDirect materials priceInterest expenseSelling expenses	$- Select -	$- Select -
Cost of goods sold-at standardDirect materials quantityFixed factory overhead volumeInterest expenseSales	- Select -	- Select -
Direct labor rateGross profit-at standardIncome before income taxIncome from operationsInterest expense	- Select -	- Select -
Cost of goods sold-at standardDirect labor timeGross profitInterest expenseSelling expenses	- Select -	- Select -
Cost of goods sold-at standardGross profitSalesSelling expensesVariable factory overhead controllable	- Select -	- Select -
Administrative expensesFixed factory overhead volumeInterest expenseSalesSelling expenses	- Select -	- Select -
Administrative expensesCost of goods sold-at standardDirect labor rateDirect materials quantityNet variance from standard cost-unfavorable			- Select -
Gross profitIncome before income taxIncome from operationsNet variance from standard cost-unfavorableSales			$- Select -
Operating expenses:
Cost of goods sold-at standardDirect labor timeDirect materials priceInterest expenseSelling expenses	$- Select -	blank	blank
Administrative expensesDirect materials priceDirect materials quantityFixed factory overhead volumeInterest expense	- Select -	blank	blank
Total operating expenses	blank	blank	Total operating expenses
Gross profit-at standardIncome before income taxIncome from operationsNet variance from standard cost-unfavorableSales			$- Select -
Other expense:
Direct labor rateDirect labor timeDirect materials priceDirect materials quantityInterest expense			- Select -
Gross profitNet variance from standard cost-unfavorableOperating lossOperating incomeSales			$- Select -