Question

All-Star ​Fender, which uses a standard cost​ system, manufactured 20,000 boat fenders during 2018.

Assume each fender produced was sold for the standard price of $45​, and total selling and administrative costs were $200,000. Prepare a standard cost income statement for 2018 for All−Star Fender.

Please prepare a standard cost income statement for 2018 for All−Star Fender.

Thank you in advance! ?

$ 900,000 192,500 7,350 F Sales Revenue Cost of Goods Sold (at standard) Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance 5,750 U 470 U 500 F 910 U Variable overhead efficiency variance Fixed overhead cost variance 490 F 2,680 U 4,790 U Fixed overhead volume variance

Answer 1

$900,000 All Star Fender Standard cost Income Statement For the year Ended December 31, 2018 Sales Revenue Cost of Goods Sold (at standard) $192,500 Manufacturing Cost Variances: Direct Materials Cost Variance -$7,350 Direct Materials Efficiency Variance $5.750 Direct Labor Cost Variance $470 Direct Labor Efficiency Variance -$500 Variable Overhead Cost Variance $910 Variable Overhead Efficiency Variance -$490 Fixed Overhead Cost Variance $2,680 Fixed Overhead Volume Variance $4.790 Total Manufacturing Cost Variances $6.260 Cost of Goods Sold at actual cost Gross Profit Less: Selling and Administrative Expenses Operating Income $198.760 $701,240 $200,000 $501.240