Variances, Entries, and Income Statement A summary of Blake Company's manufacturing variance report for June 2016 follows.

			Total Standard Costs (7,600 units)		Actual Costs (7,600 units)		Variances
Direct material			$88,160		$86,800		$1,360		F
Direct labor			81,510		87,000		5,490		U
Variable overhead			38,190		36,790		1,400		F
Fixed overhead			102,600		102,600		-
			$310,460		$313,190		$2,730		U

Standard material cost per unit of product is 4 pounds at $2.90 per pound, and standard direct labor cost is 0.75 hours at $14.30 per hour. Total actual material cost represents 31,000 pounds purchased at $2.80 per pound. Total actual labor cost represents 6,000 hours at $14.50 per hour. According to standards, variable overhead rate is applied at $6.70 per direct labor hour (based on a normal capacity of 6,000 direct labor hours or 8,000 units of product). Assume that all fixed overhead is applied to work in progress inventory.

a. Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

b. Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead.

c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 6,400 units on account at $60 each (assume no beginning finished goods inventory).

d. Prepare a partial income statement (through gross profit on sales) showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs.

Do not use negative signs with any of your answers below.