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 listed below. The company sold all goods produced during the period at a selling price of $75 each.

Standard costs per unit:

Direct materials $ 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

The direct labor variance is below:

Direct labor rate variance is $2,500

Direct labor time variance is $225

Direct labor cost variance is $2275