The following data were taken from the records of Arseneault Company for December:

Administrative expenses	$114,100
Cost of goods sold (at standard)	634,000
Direct materials price variance-unfavorable	1,830
Direct materials quantity variance-favorable	(720)
Direct labor rate variance-favorable	(1,240)
Direct labor time variance-unfavorable	490
Variable factory overhead controllable variance-favorable	(250)
Fixed factory overhead volume variance-unfavorable	4,190
Interest expense	3,150
Sales	996,000
Selling expenses	136,500

Required:

Prepare an income statement for presentation to management. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon (:) will automatically appear for you if it is required.

X

Labels and Amount Descriptions

The following data were taken from the records of Arseneault Company for December:

Administrative expenses	$114,100
Cost of goods sold (at standard)	634,000
Direct materials price variance-unfavorable	1,830
Direct materials quantity variance-favorable	(720)
Direct labor rate variance-favorable	(1,240)
Direct labor time variance-unfavorable	490
Variable factory overhead controllable variance-favorable	(250)
Fixed factory overhead volume variance-unfavorable	4,190
Interest expense	3,150
Sales	996,000
Selling expenses	136,500

Required:

Prepare an income statement for presentation to management. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. A colon (:) will automatically appear for you if it is required.

X

Labels and Amount Descriptions

Labels
For the Month Ended December 31
For the Year Ended December 31
Variance adjustments to gross profit at standard
Operating expenses
Other expense
Amount Descriptions
Administrative expenses
Add net favorable variance from standard
Cost of goods sold-at standard
Depreciation of plant and equipment
Direct labor rate
Direct labor time
Direct materials price
Direct materials quantity
Fixed factory overhead volume
Gross profit
Gross profit-at standard
Income before income tax
Income from operations
Insurance and property taxes
Interest expense
Loss before income tax
Loss from operations
Less net unfavorable variance from standard
Sales
Selling expenses
Variable factory overhead controllable