Alvarado Company produces a product that requires $2\mathrm{.}5$ standard pounds per unit at a standard price of $$3\mathrm{.}95$ per pound. Assume Alvarado sold $16,000$ units at $$164$ per unit. The company used $33,000$ pounds to produce $16,000$ units, which were purchased at $$4\mathrm{.}20$ per pound. Each unit requires $3$ standard direct labor hours per unit at a standard hourly rate of $$20\mathrm{.}05$ per hour. For the $16,000$ units produced, $63,400$ hours were needed and employees were paid an hourly rate of $$19\mathrm{.}90$ per hour. The company uses a standard variable overhead cost per unit of $$0\mathrm{.}80$ per direct labor hour. Actual variable factory overhead was $$35,450.$ The company uses a standard fixed overhead cost per unit of $$1\mathrm{.}05$ per direct labor hour at $45,000$ hours, which is $100\%$ of normal capacity.

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Prepare an income statement through gross profit for Alvarado Company for the month ending March $31.$ For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank.

Alvarado Company

Income Statement Through Gross Profit

For the Month Ended March $31$

Sales

Cost of goods sold$-$at standard

Gross profit$-$at standard

$

$

Unfavorable

Favorable

Variances from standard cost:

Direct materials price

$

$