The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable Overhead Cost Variance 3,200 (9) Variable Overhead Efficiency Variance 1,600 (10) Fixed Overhead Cost Variance 2,400 (11) Fixed Overhead Volume Variance (12) Total Manufacturing Cost Variances (13) Cost of Goods Sold at actual Gross Profit Has management done a good or poor job of controlling costs? Explain. Overall, Boise Outfitters management appears to have done a (14) job at controlling costs. Total manufacturing variances are (15) . 1: Data Table Sales Revenue (at standard) $540,000 Cost of Goods Sold (at standard) 344,000 Direct Materials Cost Variance 1,200 F Direct Materials Efficiency Variance 5,800 F Direct Labor Cost Variance 4,800 U Direct Labor Efficiency Variance 2,000 F Variable Overhead Cost Variance 3,200 U Variable Overhead Efficiency Variance 1,600 U Fixed Overhead Cost Variance 2,400 U Fixed Overhead Volume Variance 8,000 F (1) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance (2) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance (3) good poor (15) favorable unfavorable

The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable Overhead Cost Variance 3,200 (9) Variable Overhead Efficiency Variance 1,600 (10) Fixed Overhead Cost Variance 2,400 (11) Fixed Overhead Volume Variance (12) Total Manufacturing Cost Variances (13) Cost of Goods Sold at actual Gross Profit Has management done a good or poor job of controlling costs? Explain. Overall, Boise Outfitters management appears to have done a (14) job at controlling costs. Total manufacturing variances are (15) . 1: Data Table Sales Revenue (at standard) $540,000 Cost of Goods Sold (at standard) 344,000 Direct Materials Cost Variance 1,200 F Direct Materials Efficiency Variance 5,800 F Direct Labor Cost Variance 4,800 U Direct Labor Efficiency Variance 2,000 F Variable Overhead Cost Variance 3,200 U Variable Overhead Efficiency Variance 1,600 U Fixed Overhead Cost Variance 2,400 U Fixed Overhead Volume Variance 8,000 F (1) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance (2) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance (3) good poor (15) favorable unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The

May

2024

revenue and cost information for

Boise

Outfitters, Inc. follows:

1(Click

the icon to view the revenue and cost information.)

Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.)

Boise Outfitters, Inc.
Standard Cost Income Statement
For the Month Ended May 31, 2024
(1) Sales Revenue			$540,000
(2) Cost of Goods Sold at standard		$344,000
(3) Manufacturing Cost Variances:
	(4) Direct Materials Cost Variance
	(5) Direct Materials Efficiency Variance
	(6) Direct Labor Cost Variance	4,800
	(7) Direct Labor Efficiency Variance
	(8) Variable Overhead Cost Variance	3,200
	(9) Variable Overhead Efficiency Variance	1,600
	(10) Fixed Overhead Cost Variance	2,400
	(11) Fixed Overhead Volume Variance
	(12) Total Manufacturing Cost Variances
(13) Cost of Goods Sold at actual
Gross Profit

Has management done a good or poor job of controlling costs? Explain.

Overall,

Boise

Outfitters management appears to have done a

(14)

job at controlling costs. Total manufacturing variances are

(15)

1: Data Table

Sales Revenue (at standard)	$540,000
Cost of Goods Sold (at standard)	344,000
Direct Materials Cost Variance	1,200 F
Direct Materials Efficiency Variance	5,800 F
Direct Labor Cost Variance	4,800 U
Direct Labor Efficiency Variance	2,000 F
Variable Overhead Cost Variance	3,200 U
Variable Overhead Efficiency Variance	1,600 U
Fixed Overhead Cost Variance	2,400 U
Fixed Overhead Volume Variance	8,000 F

(1)

Cost of Goods Sold at actual

Cost of Goods Sold at standard

Direct Labor Cost Variance

Direct Labor Efficiency Variance

Direct Materials Cost Variance

Direct Materials Efficiency Variance

Fixed Overhead Cost Variance

Fixed Overhead Volume Variance

Manufacturing Cost Variances:

Sales Revenue

Selling and Administrative Expenses

Total Manufacturing Cost Variances

Variable Overhead Cost Variance

Variable Overhead Efficiency Variance

(2)

Cost of Goods Sold at actual

Cost of Goods Sold at standard

Direct Labor Cost Variance

Direct Labor Efficiency Variance

Direct Materials Cost Variance

Direct Materials Efficiency Variance

Fixed Overhead Cost Variance

Fixed Overhead Volume Variance

Manufacturing Cost Variances:

Sales Revenue

Selling and Administrative Expenses

Total Manufacturing Cost Variances

Variable Overhead Cost Variance

Variable Overhead Efficiency Variance

(3)

good

poor

(15)

favorable

unfavorable

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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