91Ó°ÊÓ

Standard cost income statement

Particulars

$

$

Sales Revenue at standard ($5/mug × 62,500 mugs)

$312,500

Cost of Goods Sold at standard (from P23-33B) $\left(62,500×\mathrm{\$}1.04\right)$

$65,000

Manufacturing Cost Variances (from P23-33B):

Direct Materials Cost Variance $(880)

Direct Materials Efficiency Variance (375)

Direct Labor Cost Variance 5,910

Direct Labor Efficiency Variance 1,330

Variable Overhead Cost Variance (985)

Variable Overhead Efficiency Variance 570

Fixed Overhead Cost Variance 6,643

Fixed Overhead Volume Variance (1,053)

Total Manufacturing Variances

11,160

Cost of Goods Sold at actual

76,160

Gross Profit

236,340

Selling and Administrative Expenses

130,000

Operating Income

$106,340