Reference no: EM133055064

Question - Preparing a standard cost income statement - The May 2016 revenue and cost information for Austin Outfitters, Inc. follows:

Sales revenue (at standard): $580,000

Cost of goods sold (at standard): 343,000

Direct materials cost variance: 1,200 (F)

Direct materials efficiency variance: 6000 (F)

Direct labor cost variance: 4400 (U)

Direct labor efficiency variance: 2000 (F)

Variable overhead cost variance: 3000 (U)

Variable overhead efficiency variance: 1500 (U)

Fixed overhead cost variance: 1200 (U)

Fixed overhead volume variance: 8200 (F)

Required - Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management to use. Has management done a good or a poor job of controlling costs? Explain.