Chapter 23, Problem E23.24E

Preparing a standard cost income statement Learning Objective 6

GP $1,097,480

McCarthy Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018. The 2018 revenue and cost information for McCarthy follows

Sales Revenue	$ 1,300,000
Cost of Goods Sold (at standard)	196,800
Direct materials cost variance	7,150 F
Direct materials efficiency variance	5,950 U
Direct labor cost variance	400 U
Direct labor efficiency variance	530 F
Variable overhead cost variance	650 U
Variable overhead efficiency variance	360 F
Fixed overhead cost variance	2,350 U
Fixed overhead volume variance	4,410 U

Assume each fender produced was sold for the standard price of $65, and total selling and administrative costs were $250,000. Prepare a standard cost income statement for 2018 for McCarthy Fender,