Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,260U Labor quantity variance $760U Materials quantity variance 720F Overhead variance Labor price variance 710U 540U In addition, 8,660 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $8,020 for the month. Prepare an income statement for management for the month ended January 31, 2017.

Fisk Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. Materials price variance $1,260U Labor quantity variance $760U Materials quantity variance 720F Overhead variance Labor price variance 710U 540U In addition, 8,660 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and administrative expenses were $8,020 for the month. Prepare an income statement for management for the month ended January 31, 2017.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 4CE: Kavallia Company set a standard cost for one item at 328,000; allowable deviation is 14,500. Actual...

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