Standard: Fixed overhead $$202,400($budgeted and actual amount$)$

Actual yards used: $44,500$ yards at $$6\mathrm{.}25$ per yard

Actual hours worked: $21,750$ hours at $$14\mathrm{.}90$ per hour

Actual total factory overhead: $$237,000$

Prepare an income statement that includes variances for the year ending December $31$ through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.

Baxter Company

Income Statement Through Gross Profit

For the Year Ending December $31$

Line Item Description Unfavorable

Amount Favorable

Amount

Amount

Sales $Sales

Cost of goods sold$$at standard Cost of goods sold$$at standard

Gross profit$$at standard $Gross profit$$at standard

Less variances from standard cost

Direct materials price blank $Direct materials price

blank

Direct materials quantity $Direct materials quantity

blank blank

Direct labor rate blank Direct labor rate

blank

Direct labor time blank Direct labor time

blank

Factory overhead controllable Factory overhead controllable

blank blank

Factory overhead volume Factory overhead volume

blank blank

Net variance from standard cost$$unfavorable blank blank Net variance from standard cost$$unfavorable

Gross profit$$actual $Gross profit$$actual

PreviousNext