91Ó°ÊÓ

Moss

Standard cost income statement

For the Month Ended July 31, 2018

Sales Revenue at standard ($3/mug × 62,500 mugs)

$187,500

Cost of Goods Sold at standard (from P23-33B) $59,375

Manufacturing Cost Variances (from P23-33B):

Direct Materials Cost Variance $(880)

Direct Materials Efficiency Variance (375)

Direct Labor Cost Variance 3,940

Direct Labor Efficiency Variance 1,045

Variable Overhead Cost Variance (985)

Variable Overhead Efficiency Variance 570

Fixed Overhead Cost Variance 6,443

Fixed Overhead Volume Variance (1,053)

Total Manufacturing Variances 8,705

Cost of Goods Sold at actual

68,080

Gross Profit

119,420

Selling and Administrative Expenses

95,000

Operating Income

$24,420