prepare a standard cost income statement for management through gross profit report 646100

Preparing a standard cost income statement The May 2012 revenue and cost information for Houston Outfitters, Inc., follows:

Sales revenue

$ 540,000

Cost of goods sold (standard)

341,000

Direct materials price variance

1,100 F

Direct materials efficiency variance

6,100 f

Direct labor price variance

4,200U

Direct labor efficiency variance

2,400 F

Variable overhead spending variance

3,300

Fixed overhead volume variance

8,100 F

Fixed overhead spending variance

1,400 U

Variable overhead efficiency variance

1,400U

Requirement

1. Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management’s use. Has management done a good or poor job of controlling costs? Explain.