The May 2016 revenue and cost information for Austin Outfitters, Inc. 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.

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Sales Revenue (at standard) Cost of Goods Sold (at standard) Direct Materials Cost Variance Direct Materias Efficiency Variance Direct Labor Cost Variance Direct Labor Efficiency Variance Variable Overhead Cost Variance Variable Overhead Efficiency Variance Fixed Overhead Cost Variance Fixed Overhead Volume Variance $580,000 343,000 1,200 F 6,000 F 4,400 U 2,000 F 3,000 U ,500 U 1,200 U 8,200 F