The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(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, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable Overhead Cost Variance 3,200 (9) Variable Overhead Efficiency Variance 1,600 (10) Fixed Overhead Cost Variance 2,400 (11) Fixed Overhead Volume Variance (12) Total Manufacturing Cost Variances (13) Cost of Goods Sold at actual Gross Profit Has management done a good or poor job of controlling costs? Explain. Overall, Boise Outfitters management appears to have done a (14) job at controlling costs. Total manufacturing variances are (15) . 1: Data Table Sales Revenue (at standard) $540,000 Cost of Goods Sold (at standard) 344,000 Direct Materials Cost Variance 1,200 F Direct Materials Efficiency Variance 5,800 F Direct Labor Cost Variance 4,800 U Direct Labor Efficiency Variance 2,000 F Variable Overhead Cost Variance 3,200 U Variable Overhead Efficiency Variance 1,600 U Fixed Overhead Cost Variance 2,400 U Fixed Overhead Volume Variance 8,000 F (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 (3) good poor (15) favorable unfavorable
The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(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, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable Overhead Cost Variance 3,200 (9) Variable Overhead Efficiency Variance 1,600 (10) Fixed Overhead Cost Variance 2,400 (11) Fixed Overhead Volume Variance (12) Total Manufacturing Cost Variances (13) Cost of Goods Sold at actual Gross Profit Has management done a good or poor job of controlling costs? Explain. Overall, Boise Outfitters management appears to have done a (14) job at controlling costs. Total manufacturing variances are (15) . 1: Data Table Sales Revenue (at standard) $540,000 Cost of Goods Sold (at standard) 344,000 Direct Materials Cost Variance 1,200 F Direct Materials Efficiency Variance 5,800 F Direct Labor Cost Variance 4,800 U Direct Labor Efficiency Variance 2,000 F Variable Overhead Cost Variance 3,200 U Variable Overhead Efficiency Variance 1,600 U Fixed Overhead Cost Variance 2,400 U Fixed Overhead Volume Variance 8,000 F (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 (3) good poor (15) favorable unfavorable
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 6PB: Using the information for Lighthizer Trading Company, prepare the income statement to include all...
Related questions
Question
The
May
2024
revenue and cost information for
Boise
Outfitters, Inc. follows:1(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, 2024
|
||||
(1) Sales Revenue
|
|
|
$540,000
|
|
(2) Cost of Goods Sold at standard
|
|
$344,000
|
|
|
(3)
|
|
|
|
|
|
(4) Direct Materials Cost Variance
|
|
|
|
|
(5) Direct Materials Efficiency Variance
|
|
|
|
|
(6) Direct Labor Cost Variance
|
4,800
|
|
|
|
(7) Direct Labor Efficiency Variance
|
|
|
|
|
(8) Variable
|
3,200
|
|
|
|
(9) Variable Overhead Efficiency Variance
|
1,600
|
|
|
|
(10) Fixed Overhead Cost Variance
|
2,400
|
|
|
|
(11) Fixed Overhead Volume Variance
|
|
|
|
|
(12) Total Manufacturing Cost Variances
|
|
|
|
(13) Cost of Goods Sold at actual
|
|
|
|
|
Gross Profit
|
|
|
|
Has management done a good or poor job of controlling costs? Explain.
Overall,
job at controlling costs. Total manufacturing variances are
Boise
Outfitters management appears to have done a
(14)
(15)
.1: Data Table
Sales Revenue (at standard)
|
$540,000
|
---|---|
Cost of Goods Sold (at standard)
|
344,000
|
Direct Materials Cost Variance
|
1,200 F
|
Direct Materials Efficiency Variance
|
5,800 F
|
Direct Labor Cost Variance
|
4,800 U
|
Direct Labor Efficiency Variance
|
2,000 F
|
Variable Overhead Cost Variance
|
3,200 U
|
Variable Overhead Efficiency Variance
|
1,600 U
|
Fixed Overhead Cost Variance
|
2,400 U
|
Fixed Overhead Volume Variance
|
8,000 F
|
(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
(3)
good
(15)
favorable
unfavorable
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