Western Outfitters' revenue and expense information for April follows:
Sales revenue at standard cost .............................................................................. $555,000
Flexible budget sales revenue variance ................................................................... $ 6,000
Sales revenue at actual .......................................................................................... $561,000
Cost of goods sold (standard) .............................................................................. $342,000
Direct materials price variance ............................................................................. $ 2,800 F
Direct materials quantity variance ........................................................................ $ 6,400 F
Direct labor rate variance ..................................................................................... $ 4,250 U
Direct labor efficiency variance ............................................................................ $ 2,450 F
Variable overhead rate variance ........................................................................... $ 1,600 U
Variable overhead efficiency variance .................................................................. $ 1,000 F
Fixed overhead budget variance ........................................................................... $ 2,050 U
Fixed overhead volume variance............................................................................ $ 7,050 F
Requirement
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.