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 1,680 Direct materials quantity variance-favorable (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 Direct materials quantity -560 Direct labor rate 1,120 Direct labor time -210 X Variable factory overhead controllable Fixed factory overhead volume 3,080 X Net variance from standard cost-unfavorable 3,360 Gross profit 314,640 Operating expenses: Selling expenses 125,000 Administrative expenses 100,800 Total operating expenses 225,800 Income from operations 88,840 Other expense: Interest expense 2,940 Operating income 85,900