The May 2014 revenue and cost information for Houston Outfitters, Inc. follow: Sales Revenue (at standard).............. $

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The May 2014 revenue and cost information for Houston Outfitters, Inc. follow:

Sales Revenue (at standard).............. $ 540,000

Cost of Goods Sold (at standard) ..........341,000

Direct Materials Cost Variance ..........1,100 F

Direct Materials Efficiency Variance......... 6,100 F

Direct Labor Cost Variance ............4,200 U

Direct Labor Efficiency Variance ..........2,400 F

Variable Overhead Cost Variance.......... 3,300 U

Variable Overhead Efficiency Variance....... 1,400 U

Fixed Overhead Cost Variance.......... 1,400 U

Fixed Overhead Volume Variance .........8,100 F

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.



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Related Book For  answer-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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