The following data were taken from the records of Griggs Company for December:
Administrative expenses | $100,800 |
Cost of goods sold (at standard) | 550,000 |
Direct materials price variance-unfavorable | 1,680 |
Direct materials quantity variance-favorable | (560) |
Direct labor rate variance-favorable | (1,120) |
Direct labor time variance-unfavorable | 490 |
Variable factory overhead controllable variance-favorable | (210) |
Fixed factory overhead volume variance-unfavorable | 3,080 |
Interest expense | 2,940 |
Sales | 868,000 |
Selling expenses | 125,000 |
Required:
Prepare an income statement for presentation to management. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. A colon (:) will automatically appear for you if it is required. Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 20,000 hours for production:
Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:
Required:
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