FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Income Statement Indicating Standard Cost Variances
The following data were taken from the records of Arseneault Company for December:
Administrative expenses
$114,100
Cost of goods sold (at standard)
634,000
Direct materials price variance-unfavorable
1,830
Direct materials quantity variance-favorable
(720)
Direct labor rate variance-favorable
(1,240)
Direct labor time variance-unfavorable
490
Variable factory overhead controllable variance-favorable
(250)
Fixed factory overhead volume variance-unfavorable
4,190
Interest expense
3,150
Sales
996,000
Selling expenses
136,500
Prepare an income statement for presentation to management. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. If an amount box does not require an entry field, leave it blank.
Arseneault Company
Income Statement
For the Month Ended December 31
Unfavorable Favorable
Variance adjustments to gross profit at standard:
Operating expenses:
Other expense:
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Transcribed Image Text:Income Statement Indicating Standard Cost Variances The following data were taken from the records of Arseneault Company for December: Administrative expenses $114,100 Cost of goods sold (at standard) 634,000 Direct materials price variance-unfavorable 1,830 Direct materials quantity variance-favorable (720) Direct labor rate variance-favorable (1,240) Direct labor time variance-unfavorable 490 Variable factory overhead controllable variance-favorable (250) Fixed factory overhead volume variance-unfavorable 4,190 Interest expense 3,150 Sales 996,000 Selling expenses 136,500 Prepare an income statement for presentation to management. Enter all amounts as positive numbers except favorable variances. Use a minus sign to indicate favorable variances. If an amount box does not require an entry field, leave it blank. Arseneault Company Income Statement For the Month Ended December 31 Unfavorable Favorable Variance adjustments to gross profit at standard: Operating expenses: Other expense:
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