Prepare an income statement for the year ended December 31, through the gross profit for Baxter Company using the following information:

Baxter Company sold 9,000 units at $135 per unit. Normal production is 9,400 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.)

Enter favorable variances as negative numbers.

Standard: 5 yards per unit at $6.30 per yard	Actual yards used: 45,760 yards at $6.25 per yard
Standard: 2.50 hours per unit at $16.00	Actual hours worked: 22,250 at $15.90 per hour
Standard: variable overhead $1.05 per unit
Standard: fixed overhead $206,800 (budgeted and actual amount)	Actual total factory overhead: $236,000

Baxter Company
Income Statement Through Gross Profit
For the Year Ended December 31
Sales			$
Cost of goods sold - at standard
Gross profit - at standard			$
	Favorable	Unfavorable
Variances from standard costs
Direct materials price	$
Direct materials quantity		$
Direct labor rate
Direct labor time
Factory overhead controllable
Factory overhead volume
Gross profit - actual			$