Palmer Productions Uses a Standard Cost System Prepare a Multi-Step, Standard Cost Income Statement

Essay

Palmer Productions uses a standard cost system. On December 31, the account balances include the following:
Sales Revenues: $750,000
Cost of Goods Sold (standard costing): $400,500
Selling & Administrative expenses: $150,000
Variances:
$$\begin{array} { | l | r | c | } \hline \text { Sales revenue variance } & \$ 6,000 & \text { F } \\\hline \text { Direct materials cost variance } & 400 & \text { U } \\\hline \text { Direct materials efficiency variance } & 375 & \text { F } \\\hline \text { Direct labor cost variance } & 675 & \text { U } \\\hline \text { Direct labor efficiency variance } & 150 & \text { F } \\\hline \text { Variable overhead cost variance } & 250 & \text { U } \\\hline \text { Variable overhead efficiency variance } & 800 & \text { F } \\\hline \text { Fixed overhead cost variance } & 420 & \text { U } \\\hline \text { Fixed overhead volume variance } & 100 & \text { F } \\\hline\end{array}$$ Prepare a multi-step, standard cost income statement.