Redlands, Inc. reported standard and actual costs for the product that it manufactures:

Item	Standard	Actual
Direct materials quantity	2 lbs.	4 lbs.
Direct material price	$3 per lb.	$2 per lb.
Direct labor quantity	3 hours	2 hours
Direct labor price	$5	$7
Factory overhead	$1 per machine hour	$2 per machine hour
Total machine hours	10 machine hours	18 machine hours
Number of finished products made	10	12
Number of finished products sold	10	11
Sales price per unit	$40	$40

Required: Compute the following items:

1. Standard product cost
2. Forecast income statement through gross profit
3. Actual product cost
4. Direct materials quantity, price, and total variances
5. Direct labor quantity, price, and total variances
6. Factory overhead quantity, price, and total variances
7. Actual cost of goods manufactured statement
8. Actual cost of goods sold (assume no beginning inventory)
9. Actual income statement through gross profit