Question - Winters Company uses a standard cost system. During January, the company reported the following manufacturing variances.
Materials price variance $1,380 U Labor quantity variance $ 760 U
Materials quantity variance 720 F Overhead variance 870 U
Labor price variance 610 U
In addition, 9,040 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 $6,400 for the month.
Prepare an income statement for management for the month ended January 31, 2011.