12. The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance-unfavorable 1,680 Direct materials quantity variance-favorable (560) Direct labor rate variance-favorable (1,120) Direct labor time variance-unfavorable 490 Variable factory overhead controllable variance-favorable (210) Fixed factory overhead volume variance-unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
12. The following data were taken from the records of Griggs Company for December: Administrative expenses $100,800 Cost of goods sold (at standard) 550,000 Direct materials price variance-unfavorable 1,680 Direct materials quantity variance-favorable (560) Direct labor rate variance-favorable (1,120) Direct labor time variance-unfavorable 490 Variable factory overhead controllable variance-favorable (210) Fixed factory overhead volume variance-unfavorable 3,080 Interest expense 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
12. The following data were taken from the records of Griggs Company for December:
| Administrative expenses | $100,800 |
| Cost of goods sold (at standard) | 550,000 |
| Direct materials price variance-unfavorable | 1,680 |
| Direct materials quantity variance-favorable | (560) |
| Direct labor rate variance-favorable | (1,120) |
| Direct labor time variance-unfavorable | 490 |
| Variable factory |
(210) |
| Fixed factory overhead volume variance-unfavorable | 3,080 |
| Interest expense | 2,940 |
| Sales | 868,000 |
| Selling expenses | 125,000 |
Prepare an income statement for presentation to management. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
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Income Statement
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