Use the following information to prepare a standard cost income statement for Watson Company for 2016. Cost

Use the following information to prepare a standard cost income statement for Watson Company for 2016.

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Cost of Goods Sold at standard Sales Revenue at standard Direct Materials Cost Variance Direct Materials Efficiency Variance Direct Labor Cost Variance Fixed Overhead Cost Variance 16,500 F 3,000 U 12,400 F 70,000 $367,000 Diect Labor Efficiency Variance 580,000 7,400 U 2,200 U 49,000 U 1,800 F Variable Overhead Efficiency Variance Fixed Overhead Volume Variance Selling and Administrative Expenses Variable Overhead Cost Variance 1,400 F