### Income Statement Indicating Standard Cost VariancesThe following data were taken from the records of Griggs Company for December:- **Administrative expenses:** $100,800- **Cost of goods sold (at standard):** $550,000**Variances:**- 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**Other Expenses:**- Interest expense: $2,940**Revenues:**- Sales: $868,000- Selling expenses: $125,000This statement provides an overview of the standard cost variances and financial performance of Griggs Company for the month of December. The variances indicate how actual costs compare to standard costs, with favorable variances showing cost savings and unfavorable variances showing excess costs. **Income Statement Template for Griggs Company****Overview:**This template is designed to help prepare an income statement for management presentation. It includes sections for recording income, cost variances, operating expenses, and other expenses. Variances should be entered as follows: a negative number for favorable variances (indicating savings) and a positive number for unfavorable variances (indicating excess costs).**Income Statement Structure:****1. Income Section:** - Revenue - Cost of Goods Sold (COGS)**2. Variances from Standard Cost:** - Lists multiple cost components with columns for Unfavorable and Favorable variances next to each item.**3. Operating Expenses:** - Space for entering details of various operating expenses.**4. Total Operating Expenses:** - Sum of all listed operating expenses.**5. Other Expenses:** - Placeholder for additional expense categories not covered in operating expenses.**Instructions:**- Leave any amount box blank if no entry is required for that category.- Use the appropriate column to indicate whether the variance is favorable or unfavorable.- Complete the template by entering values in designated areas to reflect the financial data for the period ending December 31.This structured approach ensures clarity and accurate reporting, aiding management in understanding financial performance for the specified period.

Income statement is the statement showing the net revenue after deducting all the direct as well as…

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Not Graded... Material, Labor, and Variable Overhead VariancesThe following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $17.00/lb.) $34 Actual (4,200 lb. @ $17.80/lb.) $74,760 Direct labor Standard (0.5 hr. @ $32/hr.) $16 Actual (950 hrs. @ $31/hr.) 29,450 Variable overhead Standard (0.5 hr. @ $14/hr.) $7 Actual - 14,450 Total $57 $118,660 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Materials price Answer Answer…
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 a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank. Griggs Company Income Statement For the Month Ended December 31 $ $ Unfavorable Favorable Variances from standard cost: $ $…
Boss Company’s standard cost accounting system recorded this information from its December operations. Standard direct materials cost $100,000 Direct materials quantity variance (unfavorable) 3,000 Direct materials price variance (favorable) 500 Actual direct labor cost 90,000 Direct labor efficiency variance (favorable) . 7,000 Direct labor rate variance (unfavorable) 1,200 Actual overhead cost . 375,000 Volume variance (unfavorable) . 12,000 Controllable variance (unfavorable) . 9,000 Required 1. Prepare December 31 journal entries to record the company’s costs and variances for the month. (Do not prepare the journal entry to close the variances.) Analysis Component 2. If management investigates all variances above $5,000, which variances will management investigate?
The following data relate to direct materials costs for February: Materials cost per yard: standard, $1.91; actual, $2.03 Yards per unit: standard, 4.60 yards; actual, 4.97 yards Units of production: 9,500 The direct materials quantity variance is O a. $6,713.65 favorable b. $7,135.45 unfavorable O c. $6,713.65 unfavorable O d. $7,135.45 favorable
Please help me
The records of Heritage Home Supplies show the following for July: Standard direct labor-hours allowed per unit of output 4 Standard variable overhead rate per standard direct labor-hour $ 44 Good units produced 3,800 Actual direct labor-hours worked 14,675 Actual total direct labor cost $ 537,200 Direct labor efficiency variance $ 19,530 F Actual variable overhead $ 645,700 Required: Compute the direct labor and variable overhead price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct labor: Price variance Efficiency variance Variable overhead: Price variance Efficiency variance need help
Subject : Acounting
Use this information to answer the question that follow.The following data relate to direct materials costs for February:Materials cost per yard: standard, $1.93; actual, $2.04Standard yards per unit: standard, 4.61 yards; actual, 5.10 yardsUnits of production: 9,500Calculate the direct materials price variance. a. $1,045.00 unfavorable b. $4,817.45 favorable c. $5,329.50 unfavorable d. $5,329.50 favorable
Please help me with show all calculation thanku
None
The following data relate to a product manufactured by Kent Corporation: Direct material standard: 3.5 square feet at $2.50 per square foot Direct material purchased & used: 33,000 square feet at $2.60 per square foot Manufacturing activity: 9,600 units completed SHOW ALL COMPUTATIONS Compute price variance, quantity variance, direct material variance.
None