$8-47.$ DIRECT$-$COST AND OVERHEAD VARIANCES, INCOME

STATEMENT. The Manzano Company started business on January $1,$

$2020.$ The company adopted a standard costing system for the production of backpacks. Manzano chose direct manufacturing labor as the allocation base for overhead. Budgeted and actual costs for $2020$ are as follows:

$\backslash$table$[[,$Actual Results,Static$-$Budget Amounts$],[$Backpacks produced,$180,000,160,000],[$Backpacks sold,$144,000,160,000],[$Selling price,$$17,$$$17$