Carlton Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances.

In addition, 8,000 units of product were sold at $8.00 per unit. Each unit sold had a standard cost of $6.00. Selling and administrative expenses were $6,000 for the month.

Instructions
Prepare an income statement for management for the month ended January 31,2012.

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Materials price variance Materials quantity variance Labor price variance $1,250 U 700 F 525 U Labor quantity nce Overhead variance $725 u 800 U