Question

The May 2018 revenue and cost information for Boise Outfitters, Inc. follows: E: (Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2018 Data Table $ Sales Revenue (at standard) Cost of Goods Sold (at standard) Direct Materials Cost Variance 580,000 345,000 1,100 F 6,500 F Direct Materials Efficiency Variance Direct Labor Cost Variance 4,300 U 2,300 F 3,200 U Direct Labor Efficiency Variance Variable Overhead Cost Variance Variable Overhead Efficiency Variance Fixed Overhead Cost Variance 1,200 U 1,200 U Fixed Overhead Volume Variance 8.400 F Print Done Gross Profit

Answer 1

$ 580,000 Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2018 Sales revenue Cost of Goods sold at standard Cost $345,000 Manufacturing Cost variances Direct Materials Cost variance $(1,100) Direct Materials Efficiency variance $(6,500) Direct labor Cost variance $ 4,300 Direct Labor Efficiency variance $(2,300) Variable Overhead cost variance $ 3,200 Variable Overhead Efficiency variance $ 1,200 Fixed Overhead Cost Variance $ 1,200 Fixed Overhead Volume Variance $(8,400) Total manufacturing variances $ (8,400) Cost of Goods Sold at actual cost Gross Profit $336,600 $243,400