Refer to the Watermate Data Set above. Prepare a standard cost income statement for Watermate€™s management, using Exhibit 10-19 as a guide. Assume that sales were $560,000 and actual marketing and administrative expenses were $76,500.

Watermate is a manufacturer of ceramic bottles. The company has these standards: Direct materials (clay Direct labour Static budget variable overhead Static budget fixed overhead Static budget direct labour hours Static budget number of bottles Watermate allocates manufacturing overhead to production based on standard direct labour hours Last month, Watermate reported the following actual results for the production of 70,000 bottles 1 kg per bottle, at a cost of $0.40 per kg 1/5 hour per bottle, at a cost of $14 per hour $70,000 $30,000 10,000 hours ....50,000 Direct labour Actual variable overhead Actual fixed overhead.... 1.1 kg per bottle, at a cost of $0.50 per kg 1/4 hour per bottle, at a cost of $13 per hour $104,000 28,000