Gammaro Company uses standard cost- ing. Tim Sweeney, the new president of Gammaro Company, is presented with the following data for 2017: Home Insert Page Layout Formulas Data Review View Gammaro Company Income Statements for the Year Ended December 31, 2017 Variable Costing $9,350,000 4,695,000 1,350,000 Absorption Costing $9.350,000 5,855,000 5 Revenues 6 Cost of goods sold (at standard costs) 7 Fixed manufacturing overhead (budgeted) 8 Fixed manufacturing overhead variances (all unfavorable): 9 Spending 10 Production volume 11 Total marketing and administrative costs (all fixed) 12 Total costs 13 Operating income 125,000 125,000 405,000 1,570,000 7,955,000 $1,395,000 1,570,000 7.740,000 $1,610,000 14 15 Inventories (at standard costs) 16 December 31, 2016 17 December 31, 2017 $1,345,000 45,000 $1,730,000 215,000

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