E23-22 The May 2012 revenue and cost information for Houston Outfitters, Inc., follows:

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E23-22 Preparing a standard cost income statement [15 min]
The May 2012 revenue and cost information for Houston Outfitters, Inc., follows:

Sales revenue $540,000
Cost of goods sold (standard) 341,000
Direct materials price variance 1,100 F
Direct materials efficiency variance 6,100 F
Direct labor price variance 4,200 U
Direct labor efficiency variance 2,400 F
Variable overhead spending variance 3,300 U
Fixed overhead volume variance 8,100 F
Fixed overhead spending variance 1,400 U
Variable overhead efficiency variance 1,400 U

Requirement

1. 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.