Caterlebe Productions Uses a Standard Cost System Prepare a Standard Cost Income Statement

question 106

Essay

Caterlebe 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 & Admin expenses: $150,000
Variances:
$$\begin{array} { | l | r | c | } \hline \text { Sales revenue variance } & \$ 6,000 & \text { F } \\\hline \text { Direct materials cost variance } & 400 & \text { U } \\\hline \text { Direct materials efficiency variance } & 375 & \text { F } \\\hline \text { Direct labor cost variance } & 675 & \text { U } \\\hline \text { Direct labor efficiency variance } & 150 & \text { F } \\\hline \text { Variable overhead cost variance } & 250 & \text { U } \\\hline \text { Variable overhead efficiency variance } & 800 & \text { F } \\\hline \text { Fixed overhead cost variance } & 420 & \text { U } \\\hline \text { Fixed overhead volume variance } & 100 & \text { F } \\\hline\end{array}$$ Prepare a standard cost income statement.

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Definitions:

Service Quality

The perception of how well a service meets or exceeds customer expectations, often evaluated through dimensions like reliability, responsiveness, assurance, empathy, and tangibles.

Reliability

The probability that a machine part or product will function properly for a specified time under stated conditions.

Facilitator

An individual who enables groups and organizations to work more effectively; to collaborate and achieve synergy.