Prepare an income statement for the year ended December 31, 2012, through gross profit for Aframe Company using the following information. Assume Aframe Company sold 1,400 units at $111 per unit. (Note: Normal production is 9,000 units) Standard:

7 yards per unit @ $6.90 per yard Actual yards used: 9,700 yards @ $5.40 per yard

Standard: 2 hours per unit @ $12.00 Actual hours worked: 2,770 @ $11.95 per hour

Standard: Variable overhead $2.95 per unit

Standard: Fixed overhead $1.15 Actual total factory overhead $3,250

(budgeted and actual amount)

Aframe Company

Income Statement Through Gross Profit

For the Year Ended December 31, 2012

Sales $

Cost of goods sold - at standard

Gross profit - at standard

Favorable Unfavorable

Less variances from standard cost

Direct materials price $

Direct materials quantity $

Direct labor rate

Direct labor time

Factory overhead controllable

Factory overhead volume

Gross profit - actual