Baxter Company sold $9,200$ units at $$150$ per unit. Normal production is $9,600$ units.

Standard: $5$ yards per unit at $$6\mathrm{.}30$ per yard

Standard: $2\mathrm{.}50$ hours per unit at $$16\mathrm{.}00$

Standard: Variable overhead at $$1\mathrm{.}05$ per unit

Standard: Fixed overhead $$211,200($budgeted and actual amount$)$

Actual yards used: $47,020$ yards hours at $$6\mathrm{.}25$ per yard

Actual hours worked: $22,750$ hours at $$15\mathrm{.}90$ per hour

Actual total factory overhead: $$238,000$

Prepare an income statement that includes variances for the year ending December $31$ through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.

Baxter Company

Income Statement Through Gross Profit

For the Year Ending December $31$

Line Item Description

Sales

Cost of goods sold$-$at standard

Gross profit$-$at standard

Less variances from standard cost

Direct materials price

Direct materials quantity

Direct labor rate

Direct labor time

Factory overhead controllable

Factory overhead volume

Net variance from standard cost$-$unfavorable

Gross profit$-$actual

$\backslash$table$[[\backslash$table$[[$Unfavorable$],[$Amount$]],\backslash$table$[[$Favorable$],[$Amount$]],$Amount$],[,,$$$1,380,000$