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.

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

Bellingham Company

Income Statement Through Gross Profit

For the Month Ended March 31

1 Sales

2 Cost of goods soldat standard

3 Gross profitat standard

4 Unfavorable Favorable

5 Less variance adjustment to gross profit at standard:

6 Direct materials price

7 Direct materials quantity

8 Direct labor rate

9 Direct labor time

10 Factory overhead controllable

11 Factory overhead volume

12 Net variance from standard costunfavorable

13 Gross profitactual