Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the following information. Baxter Company sold 8,600 units at $125 per unit. Normal production is 9,000 units. (Do not round the fixed overhead rate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negative numbers.)

Standard: 5 yards per unit at $6.30 per yard	Actual yards used: 43,240 yards at $6.25 per yard
Standard: 2.25 hours per unit at $15.00	Actual hours worked: 19,100 at $14.90 per hour
Standard: variable overhead $1.05 per unit
Standard: fixed overhead $211,500 (budgeted and actual amount)	Actual total factory overhead: $235,500

Baxter Company
Income Statement Through Gross Profit
For the Year Ended December 31
Sales			$fill in the blank 1
Cost of goods soldat standard			fill in the blank 2
Gross profitat standard			fill in the blank 3
	Unfavorable	Favorable
Less variance adjustments to gross profitat standard:
Direct materials price		$fill in the blank 4
Direct materials quantity	$fill in the blank 5
Direct labor rate		fill in the blank 6
Direct labor time		fill in the blank 7
Factory overhead controllable	fill in the blank 8
Factory overhead volume	fill in the blank 9
Net variance from standard costunfavorable			fill in the blank 10
Gross profit			$fill in the blank 11