Pepper Industries uses a standard cost accounting system. During March 2016 the company reported the following manufacturing variances: $\begin{array}{lrl}\text { Materials price variance }&\$ 1,600 \mathrm{~F}\
\text { Materials quantity variance } & 2,400 \mathrm{U} \
\text { Labor price variance } & 600 \mathrm{U} \
\text { Labor quantity variance } & 2,200 \mathrm{U} \
\text { Overhead controllable } & 500 \mathrm{~F} \
\text { Overhead volume } & 3,000 \mathrm{U}
\end{array}$ In addition 15000 units of product were sold at $18 per unit. Each unit sold had a standard cost of $14. Selling and administrative expenses for the month were $15000.
Instructions
Prepare an income statement for management for the month ending March 31 2016.

Question

Pepper Industries uses a standard cost accounting system. During March 2016 the company reported the following manufacturing variances: $\begin{array}{lrl}\text { Materials price variance }&\$ 1,600 \mathrm{~F}\
\text { Materials quantity variance } & 2,400  \mathrm{U} \
\text { Labor price variance } & 600  \mathrm{U} \
\text { Labor quantity variance } & 2,200 \mathrm{U} \
\text { Overhead controllable } & 500 \mathrm{~F} \
\text { Overhead volume } & 3,000 \mathrm{U}
\end{array}$ In addition 15000 units of product were sold at $18 per unit. Each unit sold had a standard cost of $14. Selling and administrative expenses for the month were $15000.
Instructions
Prepare an income statement for management for the month ending March 31 2016.

Quizplus · Accepted Answer

The Answer of Pepper Industries uses a standard cost accounting system. During March 2016 the company reported the following manufacturing variances: $\begin{array}{lrl}\text { Materials price variance }&\$ 1,600 \mathrm{~F}\
\text { Materials quantity variance } & 2,400  \mathrm{U} \
\text { Labor price variance } & 600  \mathrm{U} \
\text { Labor quantity variance } & 2,200 \mathrm{U} \
\text { Overhead controllable } & 500 \mathrm{~F} \
\text { Overhead volume } & 3,000 \mathrm{U}
\end{array}$ In addition 15000 units of product were sold at $18 per unit. Each unit sold had a standard cost of $14. Selling and administrative expenses for the month were $15000.
Instructions
Prepare an income statement for management for the month ending March 31 2016.

Pepper Industries Uses a Standard Cost Accounting System In Addition 15000 Units of Product Were Sold at $18