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 $145 per unit. Normal production is 9,000 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.)

Standard: 5 yards per unit at $6.30 per yard	Actual yards used: 43,240 yards at $6.25 per yard
Standard: 2.00 hours per unit at $15.00	Actual hours worked: 16,950 at $14.90 per hour
Standard: variable overhead $1.05 per unit
Standard: fixed overhead $198,000 (budgeted and actual amount)	Actual total factory overhead: $237,500

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
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			$