Baxter Company sold 8,600 units at $150 per unit. Normal production is 9,000 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.75 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $198,000 (budgeted and actual amount) Actual yards used: 43,240 yards hours at $6.25 per yard Actual hours worked: 23,400 hours at $14.90 per hour. Actual total factory overhead: $237,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorab 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 31 Line Item Description Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate Unfavorable Favorable Amount Amount 0 00 Amount
Baxter Company sold 8,600 units at $150 per unit. Normal production is 9,000 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.75 hours per unit at $15.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $198,000 (budgeted and actual amount) Actual yards used: 43,240 yards hours at $6.25 per yard Actual hours worked: 23,400 hours at $14.90 per hour. Actual total factory overhead: $237,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorab 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 31 Line Item Description Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate Unfavorable Favorable Amount Amount 0 00 Amount
Cornerstones of Cost Management (Cornerstones Series)
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Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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![Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter
variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory
Baxter Company
Income Statement Through Gross Profit
For the Year Ending December 31
Line Item Description
Sales
Cost of goods sold-at standard
Gross profit-at 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 cost-unfavorable
Gross profit-actual
Unfavorable Favorable
Amount Amount
100 0
000
Amount
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9308dafa-8624-4bc9-bc87-98dac8e56daa%2F9a9f6eea-52ce-4814-a764-b31e1ea05057%2Fdzembd8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter
variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory
Baxter Company
Income Statement Through Gross Profit
For the Year Ending December 31
Line Item Description
Sales
Cost of goods sold-at standard
Gross profit-at 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 cost-unfavorable
Gross profit-actual
Unfavorable Favorable
Amount Amount
100 0
000
Amount
$
![Baxter Company sold 8,600 units at $150 per unit. Normal production is 9,000 units.
Standard: 5 yards per unit at $6.30 per yard
Standard: 2.75 hours per unit at $15.00
Standard: Variable overhead at $1.05 per unit
Standard: Fixed overhead $198,000 (budgeted and actual amount)
Actual yards used: 43,240 yards hours at $6.25 per yard
Actual hours worked: 23,400 hours at $14.90 per hour
Actual total factory overhead: $237,500
Prepare an income statement that includes variances for the year ending December 31-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 31
Line Item Description
Sales
Cost of goods sold-at standard
Gross profit-at standard
Less variances from standard cost
Direct materials price
Direct materials quantity
Direct labor rate
Unfavorable Favorable
Amount
Amount
0
1000
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9308dafa-8624-4bc9-bc87-98dac8e56daa%2F9a9f6eea-52ce-4814-a764-b31e1ea05057%2Fdanyc7h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Baxter Company sold 8,600 units at $150 per unit. Normal production is 9,000 units.
Standard: 5 yards per unit at $6.30 per yard
Standard: 2.75 hours per unit at $15.00
Standard: Variable overhead at $1.05 per unit
Standard: Fixed overhead $198,000 (budgeted and actual amount)
Actual yards used: 43,240 yards hours at $6.25 per yard
Actual hours worked: 23,400 hours at $14.90 per hour
Actual total factory overhead: $237,500
Prepare an income statement that includes variances for the year ending December 31-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 31
Line Item Description
Sales
Cost of goods sold-at standard
Gross profit-at standard
Less variances from standard cost
Direct materials price
Direct materials quantity
Direct labor rate
Unfavorable Favorable
Amount
Amount
0
1000
Amount
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