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

question 87

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

Examine the relationship between income elasticity and consumer spending patterns on education and other goods.

Understand the concept of elasticity in demand and its applications.

Recognize how changes in price affect consumer demand and spending.

Differentiate between elastic, inelastic, and unitary elasticity of demand.

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