Giovanni Company produces a product that requires four standard gallons per unit. The standard price is $34.00 per gallon. Assume the company produced 3,500 units of product. The 3,500 units required 14,400 gallons, which were purchased at $33.25 per gallon. The product requires five standard hours per unit at a standard hourly rate of $30 per hour. The 3,500 units required 17,700 hours at an hourly rate of $30.50 per hour. The standard variable overhead cost per unit is $3.50 per hour. The actual variable factory overhead was $63,400. The standard fixed overhead cost per unit is $1.80 per hour at 17,000 hours, which is 100% of normal capacity.

Prepare a 2014 income statement through gross profit for Giovanni Company. Assume Giovanni sold 3,500 units at $400 per unit. Enter all amounts as positive numbers. If an amount does not require an entry or is zero, enter "0".

Giovanni Company Income statement Through Gross Profit For the Year Ended December 31, 2014 Sales Cost of goods sold-at standard Gross profit-at standard Favorable Unfavorable Less variances from standard cost Direct materials price 10800 Direct materials quantity 13600 8850 Direct labor rate Direct labor time 6000 1450 Factory overhead controllable Factory overhead volume 200 Gross profit 1400000 1093750 306250 18900 287350