Dvorak Company produces a product that requires 5 standard pounds per unit. The standard price is $2.50 per pound. The company produced 1,000 units that required 4,500 pounds, which were purchased at $3.00 per pound. The product also requires 3 standard hours per unit at a standard hourly rate of $17 per hour. The 1,000 units produced required 2,800 hours at an hourly rate of $16.50 per hour. In addition, the standard variable overhead cost per unit is $1.40 per hour and the actual variable factory overhead was $4,000. Finally, the standard fixed overhead cost per unit is $0.60 per hour at 3,500 hours, which is 100% of normal capacity.

Prepare an income statement through gross profit for Dvorak Company for the month ended July 31. Assume that Dvorak sold 1,000 units at $90 per unit. If an amount box does not require an entry, leave it blank or enter "0".

Dvorak Company Income Statement Through Gross Profit For the Month Ended July 31 $90,000 Sales 69,500 Cost of goods sold-at standard 20,500 Gross profit-at standard Unfavorable Favorable Plus variance adjustments to gross profit-at standard: $ 2,250X Direct materials price Direct materials quantity 1,250 1,400X Direct labor rate 3,400X Direct labor time 200 X Factory overhead controllable 300 Factory overhead volume 3,700 Net variance from standard cost-favorable $24,200 Gross profit-actual