QualityFender, which uses a standard cost system, manufactured20,000boat fenders during2024.The2024revenue and cost information forQualityfollows:1(Clickthe icon to view the revenue and cost information.) Assume each fender produced was sold for the standard price of$40,and total selling and administrative costs were$350,000.Prepare a standard cost income statement for2024forQualityFender. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Quality FenderStandard Cost Income StatementFor the Year Ended December 31, 2024(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Gross Profit (14) Operating Income (Loss) 1: Data TableSales Revenue$800,000Cost of Goods Sold (at standard)191,240Direct materials cost variance7,250 FDirect materials efficiency variance5,450 UDirect labor cost variance430 UDirect labor efficiency variance550 FVariable overhead cost variance610 UVariable overhead efficiency variance380 FFixed overhead cost variance2,750 UFixed overhead volume variance4,160 U(1) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(2) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(4) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(5) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(6) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(7) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(8) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(9) Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance

Question

Quality​Fender, which uses a standard cost​ system, manufactured20,000boat fenders during2024.The2024revenue and cost information forQuality​follows:1​(Clickthe icon to view the revenue and cost​ information.) Assume each fender produced was sold for the standard price of$40​,and total selling and administrative costs were$350,000.Prepare a standard cost income statement for2024forQualityFender. ​(Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive​ numbers.) Quality FenderStandard Cost Income StatementFor the Year Ended December 31, 2024(1)     (2)     (3)      (4)      (5)      (6)      (7)      (8)      (9)      (10)      (11)      (12)     (13)     Gross Profit   (14)     Operating Income (Loss)   1: Data TableSales Revenue$800,000Cost of Goods Sold (at standard)191,240Direct materials cost variance7,250 FDirect materials efficiency variance5,450 UDirect labor cost variance430 UDirect labor efficiency variance550 FVariable overhead cost variance610 UVariable overhead efficiency variance380 FFixed overhead cost variance2,750 UFixed overhead volume variance4,160 U(1)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(2)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(4)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(5)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(6)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(7)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(8)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance(9)    Cost of Goods Sold at actual Cost of Goods Sold at standard Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Cost Variances: Sales Revenue Selling and Administrative Expenses Total Manufacturing Cost Variances Variable Overhead Cost Variance Variable Overhead Efficiency Variance

Accepted Answer

Standard Cost Income Statement - Standard cost is predetermined cost system rather than exact costs…

Quality Fender
Standard Cost Income Statement
For the Year Ended December 31, 2024
(1)
(2)
(3)
	(4)
	(5)
	(6)
	(7)
	(8)
	(9)
	(10)
	(11)
	(12)
(13)
Gross Profit
(14)
Operating Income (Loss)

Sales Revenue	$800,000
Cost of Goods Sold (at standard)	191,240
Direct materials cost variance	7,250 F
Direct materials efficiency variance	5,450 U
Direct labor cost variance	430 U
Direct labor efficiency variance	550 F
Variable overhead cost variance	610 U
Variable overhead efficiency variance	380 F
Fixed overhead cost variance	2,750 U
Fixed overhead volume variance	4,160 U