Question
Bellingham Company produces a product that requires 2.5 standard pounds per unit at a standard price of $3.75 per pound. The company used 36,000 pounds
Bellingham Company produces a product that requires 2.5 standard pounds per unit at a standard price of $3.75 per pound. The company used 36,000 pounds to produce 15,000 units, which were purchased at $4.00 per pound. Each unit requires 4 standard direct labor hours per unit at a standard hourly rate of $20 per hour. For the 15,000 units produced, 61,800 hours were needed and employees were paid an hourly rate of $19.85 per hour. The company uses a standard variable overhead cost per unit of $0.90 per direct labor hour. Actual variable factory overhead was $52,770. The company uses a standard fixed overhead cost per unit of $1.15 per direct labor hour at 58,000 hours, which is 100% of normal capacity.
Prepare an income statement through gross profit for Bellingham Company for the month ending March 31. Assume Bellingham sold 15,000 units at $172 per unit. Enter all amounts as positive numbers. If an amount does not require an entry or is zero, enter "0".
Bellingham Company | |||
Income Statement Through Gross Profit | |||
For the Month Ending March 31 | |||
Sales | $ | ||
Cost of goods sold-at standard | |||
Gross profit-at standard | $ | ||
Favorable | Unfavorable | ||
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 | $ |
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