Baxter Company sold units at $ per unit. Normal production is units.
Standard: yards per unit at $ per yard
Standard: hours per unit at $
Standard: Variable overhead at $ per unit
Standard: Fixed overhead $budgeted and actual amount
Actual yards used: yards hours at $ per yard
Actual hours worked: hours at $ per hour
Actual total factory overhead: $
Prepare an income statement that includes variances for the year ending December 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
Line Item Description
Sales
Cost of goods soldat standard
Gross profitat standard
Less variances from standard cost
Direct materials price
Direct materials quantity
Direct labor rate
Direct labor time
Factory overhead controllable
Factory overhead volume
Net variance from standard costunfavorable
Gross profitactual
tabletableUnfavorableAmounttableFavorableAmountAmount$
