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

question 153

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:

Somatic Nervous System

A part of the peripheral nervous system responsible for voluntary movements of muscles and the reception of external stimuli.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate, consisting of the sympathetic and parasympathetic divisions.

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles, and also mediates sensory information.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.