The May 2018 revenue and cost information for McDonald Outfitters, Inc. follows:
Sales Revenue (at standard) ...................................... $ 610,000
Cost of Goods Sold (at standard) ................................. 348,000
Direct Materials Cost Variance .................................... 1,500 F
Direct Materials Efficiency Variance .............................. 6,600 F
Direct Labor Cost Variance ........................................ 4,200 U
Direct Labor Efficiency Variance ................................. 2,700 F
Variable Overhead Cost Variance ................................ 2,800 U
Variable Overhead Efficiency Variance ......................... 1,100 U
Fixed Overhead Cost Variance ................................... 2,300 U
Fixed Overhead Volume Variance ............................... 8,300 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.