Refer to the FlowerMate data set. Prepare a standard cost income statement for the company's management. Assume that sales were $480,000 and actual marketing and administrative expenses were $76,500.
In FlowerMate Data
Direct materials (resin) ................................. 10 pounds per pot at a cost of $4.00 per pound
Direct labor .................................................................. 2.0 hours at a cost of $16.00 per hour
Standard variable manufacturing overhead rate ........................... $3.00 per direct labor hour
Budgeted fixed manufacturing overhead .................................................................. $10,000
Standard fixed MOH rate ................................................ $7.00 per direct labor hour (DLH)
Direct materials .............................. Purchased 11,200 pounds at a cost of $4.20 per pound;
Used 10,500 pounds to produce 1,000 pots
Direct labor .......................... Worked 2.2 hours per flower pot at a cost of $15.00 per hour
Actual variable manufacturing overhead ...................... $3.40 per direct labor hour for total
actual variable manufacturing overhead of $7,480
Actual fixed manufacturing overhead ....................................................................... $9,800
Standard fixed manufacturing overhead allocated based on actual production ..... $14,000