(Appendix) Prepare a standard cost income statement (Learning Objective 6)
Western Outfitters’ revenue and expense information for April follows:

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.

Sales revenue. $560,000 Cost of good sold (standard)....... 342,000 Direct materials price variance.. 2,000 F Direct materials efficiency variance.. 6,000 F Direct labor price variance 4,000 U Direct labor efficiency variance........... 2,000 F Overhead flexible budget variance. 3,500 U Production volume variance. 8,000 F