Prepare an income statement that includes variances for the 2020 calendar year end for Bright Light using the information shown and the direct labor variances calculated in Exercise 10. The company sold all goods produced during the period at a selling price of $75 each. Standard costs per unit: Direct material $ 10.00 Fixed factory overhead 6.50 Variable factory overhead 4.50 Direct labor 9.00 Total $ 30.00 Variances: Direct materials price $(1,900) Direct materials quantity $2,750

Factory overhead controllable $6,700 Factory overhead volume $(2,100) Selling expenses $23,500 Administrative expenses $27,900

EXERCISE 10:

rn Rider Inc. 2 Factory Overhead Cost Variance Report 3 For the Month Ending June 30 4 Productive capacity for the month (100% of normal) 5,000 hours 5 Actual production for the month 4,000 hours 6 7 Budget (at Actual Production) 8 Variances 9 Actual Favorable Unfavorable 10 Variable factory overhead costs: 11 Indirect factory wages $ 8,000 $ 5,100 $(2,900) 12 Power and light 4,000 4,200 $ 200 13 Indirect materials 2,400 1,100 (1,300) 14 Total variable factory 15 overhead cost $14,400 $10,400 16 Fixed factory overhead costs: 17 Supervisory salaries $ 5,500 $ 5,500 18 Depreciation of plant and 19 equipment 4,500 4,500 20 Insurance and property taxes 2,000 2,000 21 Total fixed factory 22 overhead cost $12,000 $12,000 23 Total factory overhead cost $26,400 $22,400 24 Total controllable variances $(4,200) $ 200 25 26 27 Net controllable variancefavorable [$(4,200) favorable + $200] unfavorable $(4,000) 28 Volume varianceunfavorable: 29 Capacity not used at the standard rate for fixed 30 factory overhead1,000 $2.40 2,400 31 Total factory overhead cost variancefavorable $(1,600)