Alvarado Company produces a product that requires $3\mathrm{.}0$ standard pounds per unit at a standard price of $$6,00$ per pound. The company used $23,900$ pounds to produce $8,000$ units, which were purchased at $$6\mathrm{.}20$ per pound. Each unit requires $7\mathrm{.}5$ standard direct labor hours per unit at a standard hourly rate of $$22\mathrm{.}50$ per hour. For the $8,000$ units produced, $60,200$ hours were needed and employees were paid an hourly rate of $$21\mathrm{.}95$ per hour. The company uses a standard variable overhead cost per unit of $$1\mathrm{.}45$ per direct labor hour. Actual variable factory overhead was $$85,900.$ The company uses a standard fixed overhead cost per unit of $$2\mathrm{.}00$ per direct labor hour at $55,000$ hours, which is $100\%$ of normal capacity.

Prepare an income statement through gross profit for Alvarado Company for the month ended March $31.$ Assume Alvarado sold $8,000$ units at $$250$ per unit. 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 $31$

For the Month Ended March $31$

Line Item Description

Sales

Cost of goods sold$-$at standard

Unfavorable Favorable profit$-$at standard

Variances from standard cost:

Direct materials price

Direct materials quantity

Direct labor rate

Direct labor time

Factory overhead controllable

Factory overhead volume

Net variances from standard cost$-$favorable

Gross profit