Winters Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances.

Materials price variance . $1,250 U

Labor quantity variance .. $725 U

Materials quantity variance .. 700 F

Overhead variance ...... 800 U

Labor price variance .... 525 U

In addition, 8,000 units of product were sold at $8.00 per unit. Each unit sold had a standard cost of $6.00. Selling and administrative expenses were $6,000 for the month.

Instructions

Prepare an income statement for management for the month ended January 31, 2011.