Question 4 (25 marks) ABC uses a standard cost accounting system.

During January the company reported the following:

$1,500

F

Material Price Variance

$1,300

U

Material Quantity Variance

$750

U

Labour Price Variance

$1,300

U

Labour Quantity Variance

$600

F

Overhead Controllable Variance

$4,000

U

Overhead Volume Variance

12,000

Units were Sold

$20

per Unit Selling Price

$14

Standard Cost

$11,000

Selling & Administration Costs

Instructions Prepare an income statement for January 31, current year.