Consider the following information:

Requirement
1. Use the above information to prepare a standard cost income statement for Whitmer, using Exhibit 23-14 as a guide. Remember that unfavorable variances increase cost of goodssold.

| Direct labor efficiency variance Cost of goods sold Sales revenue Direct materials price variance Direct materials efficiency variance Direct labor price variance Fixed overhead spending variance $18,000 F 3,400 U $12,000 F $367,000 Variable overhead efficiency variance $550,000 $ 8,000 U Fixed overhead volume variance $ 2,800 U Marketing and administrati ve costs $ 42,000 U Variable overhead spending variance $ 1,900 F $77,000 700 F