### Best Fender Standard Cost Income Statement**For the Year Ended December 31, 2024**#### Data Table- **Sales Revenue:** $600,000- **Cost of Goods Sold (at standard):** $191,240- **Direct Materials Cost Variance:** $7,250 F (Favorable)- **Direct Materials Efficiency Variance:** $5,960 U (Unfavorable)- **Direct Labor Cost Variance:** $460 U (Unfavorable)- **Direct Labor Efficiency Variance:** $560 F (Favorable)- **Variable Overhead Cost Variance:** $950 U (Unfavorable)- **Variable Overhead Efficiency Variance:** $710 F (Favorable)- **Fixed Overhead Cost Variance:** $2,140 U (Unfavorable)- **Fixed Overhead Volume Variance:** $4,560 U (Unfavorable)### Explanation:The income statement outline suggests placeholders for various financial entries, including Gross Profit and Operating Income (Loss). This structured template is designed to incorporate the given data into an organized financial report, showing each variance and standard cost, aimed at providing insights into production efficiency and financial performance for Best Fender in 2024.

Income statement is prepared by the business entities so as to know how much amount of gross profit or net profit they earn during the year. Gross profit is determined by deducting the cost of goods sold from the sales revenue whereas net profit is determined by deducting all the indirect expenses from the gross profit.

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Uses a standard cost system, manufactured 20,000 boat fenders during 2024. The 2024 revenue and cost information for Best follows: (Click the icon to view the revenue and cost information.) Assume each fender produced was sold for the standard price of $30, and total selling and administrative costs were $150,000. Prepare a standard cost income statement for 2024 for Best Fender. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Gross Profit Operating Income (Loss) Best Fender Standard Cost Income Statement For the Year Ended December 31, 2024 m Data table Sales Revenue Cost of Goods Sold (at standard) Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Print Done $ 600,000 191,240 7,250 F 5,960 U 460 U 560 F 950 U 710 F 2,140 U 4,560 U - X

Uses a standard cost system, manufactured 20,000 boat fenders during 2024. The 2024 revenue and cost information for Best follows: (Click the icon to view the revenue and cost information.) Assume each fender produced was sold for the standard price of $30, and total selling and administrative costs were $150,000. Prepare a standard cost income statement for 2024 for Best Fender. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Gross Profit Operating Income (Loss) Best Fender Standard Cost Income Statement For the Year Ended December 31, 2024 m Data table Sales Revenue Cost of Goods Sold (at standard) Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Print Done $ 600,000 191,240 7,250 F 5,960 U 460 U 560 F 950 U 710 F 2,140 U 4,560 U - X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

### Best Fender Standard Cost Income Statement
**For the Year Ended December 31, 2024**

#### Data Table

- **Sales Revenue:** $600,000
- **Cost of Goods Sold (at standard):** $191,240
- **Direct Materials Cost Variance:** $7,250 F (Favorable)
- **Direct Materials Efficiency Variance:** $5,960 U (Unfavorable)
- **Direct Labor Cost Variance:** $460 U (Unfavorable)
- **Direct Labor Efficiency Variance:** $560 F (Favorable)
- **Variable Overhead Cost Variance:** $950 U (Unfavorable)
- **Variable Overhead Efficiency Variance:** $710 F (Favorable)
- **Fixed Overhead Cost Variance:** $2,140 U (Unfavorable)
- **Fixed Overhead Volume Variance:** $4,560 U (Unfavorable)

### Explanation:

The income statement outline suggests placeholders for various financial entries, including Gross Profit and Operating Income (Loss). This structured template is designed to incorporate the given data into an organized financial report, showing each variance and standard cost, aimed at providing insights into production efficiency and financial performance for Best Fender in 2024.

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