Palmer Productions Uses a Standard Cost System Prepare a Multi-Step,standard Cost Income Statement

question 93

Essay

Palmer Productions uses a standard cost system.On December 31,the account balances include the following:
Sales Revenues: $750,000
Cost of Goods Sold (standard costing): $400,500
Selling & Administrative expenses: $150,000
Variances:
$$\begin{array} { | l | r | c | } \hline \text { Sales revenue variance } & \$ 6,000 & \mathrm {~F} \\\hline \text { Direct materials cost variance } & 400 & \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 375 & \mathrm {~F} \\\hline \text { Direct labor cost variance } & 675 & \mathrm { U } \\\hline \text { Direct labor efficiency variance } & 150 & \mathrm {~F} \\\hline \text { Variable overhead cost variance } & 250 & \mathrm { U } \\\hline \text { Variable overhead efficiency variance } & 800 & \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 420 & \mathrm { U } \\\hline \text { Fixed overhead volume variance } & 100 & \mathrm {~F} \\\hline\end{array}$$ Prepare a multi-step,standard cost income statement.

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Definitions:

Obedience

The act of following orders or directions from an authority figure, often without question.

Perceived Authority

The extent to which an individual is viewed by others as knowledgeable or powerful in a particular area or situation, affecting their influence over others.

Ethics

A branch of philosophy that deals with questions about morality, including the rightness and wrongness of actions, virtues and vices, and good and evil.

Aggression

Behavior that is intended to harm or injure another being who is motivated to avoid such treatment.