Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. The company produced 15,000 units that required 36,000 pounds, which were purchased at $4.00 per pound. The product also requires 4 standard hours per unit at a standard hourly rate of $20 per hour. The 15,000 units required 61,800 hours at an hourly rate of $19.85 per hour. In addition, the standard variable overhead cost per unit is $0.90 per hour and the actual variable factory overhead was $52,770. Finally, the standard fixed overhead cost per unit is $1.15 per hour at 58,000 hours, which is 100% of normal capacity. Assume that Bellingham sold 15,000 units at $172 per unit.

Prepare a income statement through gross profit for Bellingham Company. Enter all amounts as positive numbers except favorable variances.

For the Month Ended March 31 Sales 2 Cost of goods sold-at standard 3 Gross profit-at standard Unfavorable Favorable 5 Less variance adjustment to gross profit at standard: 6 Direct materials price 7 Direct materials quantity Direct labor rate Direct labor time 10 Factory overhead controllable Factory overhead volume Net variance from standard cost-unfavorable 13 Gross profit-actual