Caterlebe Productions uses a standard cost system
On December 31, the account balances include the following:
Sales Revenues: $750,000
Cost of Goods Sold (standard costing): $400,500
Selling & Admin expenses: $150,000
Variances:
Sales revenue variance $6,000 F
Direct materials cost variance 400 U
Direct materials efficiency variance 375 F
Direct labor cost variance 675 U
Direct labor efficiency variance 150 F
Variable overhead cost variance 250 U
Variable overhead efficiency variance 800 F
Fixed overhead cost variance 420 U
Fixed overhead volume variance 100 F
Prepare a standard cost income statement.
What will be an ideal response
Caterlebe Productions
Standard Cost Income Statement
For the Year Ended December 31, 20XX
Sales Revenue at standard $750,000
Sales Revenue Variance $6,000
Sales Revenue at actual $756,000
Cost of Goods Sold at standard $400,500
Manufacturing Cost Variances:
Direct Materials Cost Variance $400
Direct Materials Efficiency Variance (375 )
Direct Labor Cost Variance 675
Direct Labor Efficiency Variance (150 )
Variable Overhead Cost Variance 250
Variable Overhead Efficiency Variance (800 )
Fixed Overhead Cost Variance 420
Fixed Overhead Volume Variance (100 )
Total Manufacturing Variances 320
Cost of Goods Sold at actual (400,820 )
Gross Profit $355,180
Selling and Administrative Expenses (150,000 )
Operating Income $205,180
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