Question
Alvarado Company produces a product that requires 3.0 standard pounds per unit at a standard price of $3.65 per pound. Assume Alvarado sold 18,000 units
Alvarado Company produces a product that requires 3.0 standard pounds per unit at a standard price of $3.65 per pound. Assume Alvarado sold 18,000 units at $176 per unit. The company used 36,000 pounds to produce 18,000 units, which were purchased at $3.90 per pound. Each unit requires 3 standard direct labor hours per unit at a standard hourly rate of $19.65 per hour. For the 18,000 units produced, 61,600 hours were needed and employees were paid an hourly rate of $19.50 per hour. The company uses a standard variable overhead cost per unit of $0.80 per direct labor hour. Actual variable factory overhead was $34,910. The company uses a standard fixed overhead cost per unit of $1.05 per direct labor hour at 41,000 hours, which is 100% of normal capacity.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Open spreadsheet
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.
Line Item Description | Amount | Amount | Amount |
---|---|---|---|
Sales | $fill in the blank 2 | ||
Cost of goods soldat standard | fill in the blank 3 | ||
Gross profitat standard | $fill in the blank 4 | ||
Unfavorable | Favorable | ||
Variances from standard cost: | |||
Direct materials price | $fill in the blank 5 | $fill in the blank 6 | |
Direct materials quantity | fill in the blank 7 | fill in the blank 8 | |
Direct labor rate | fill in the blank 9 | fill in the blank 10 | |
Direct labor time | fill in the blank 11 | fill in the blank 12 | |
Factory overhead controllable | fill in the blank 13 | fill in the blank 14 | |
Factory overhead volume | fill in the blank 15 | fill in the blank 16 | |
Net variances from standard cost-unfavorable | fill in the blank 17 | ||
Gross profit |
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