Using the following data from the records of Starts Inc. for November of the current year, prepare an income statement (through operating income) that includes variances for presentation to management: Administrative expenses $   63,200 Cost of goods sold (at standard) 350,000 Direct materials quantity variance—favorable 550 Direct materials price variance—favorable 3,200 Direct labor time variance—unfavorable 600 Direct labor rate variance—favorable 750 Factory overhead volume variance—unfavorable 8,000 Factory overhead controllable variance—favorable 2,500 Sales 690,000 Selling expenses 172,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the following data from the records of Starts Inc. for November of the current year, prepare an income statement (through operating income) that includes variances for presentation to management:

Administrative expenses

$   63,200

Cost of goods sold (at standard)

350,000

Direct materials quantity variance—favorable

550

Direct materials price variance—favorable

3,200

Direct labor time variance—unfavorable

600

Direct labor rate variance—favorable

750

Factory overhead volume variance—unfavorable

8,000

Factory overhead controllable variance—favorable

2,500

Sales

690,000

Selling expenses

172,000

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