Question

The May 2014 revenue and cost information for Houston Outfitters, Inc. follow:
Sales Revenue (at standard).............. $ 540,000
Cost of Goods Sold (at standard) .......... 341,000
Direct Materials Cost Variance .......... 1,100 F
Direct Materials Efficiency Variance......... 6,100 F
Direct Labor Cost Variance ............ 4,200 U
Direct Labor Efficiency Variance .......... 2,400 F
Variable Overhead Cost Variance.......... 3,300 U
Variable Overhead Efficiency Variance....... 1,400 U
Fixed Overhead Cost Variance.......... 1,400 U
Fixed Overhead Volume Variance ......... 8,100 F
Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management’s use. Has management done a good or poor job of controlling costs? Explain.




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  • CreatedJanuary 16, 2015
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