Income Statement with Variances

Alvarado Company produces a product that requires $3\mathrm{.}0$ standard pounds per unit at a standard price of $$3\mathrm{.}50$ per pound. Assume Alvarado sold $18,000$ units at $$178$ per unit. The company used $34,000$ pounds to produce $18,000$ units, which were purchased at $$3\mathrm{.}75$ per pound. Each unit requires $3$ standard direct labor hours per unit at a standard hourly rate of $$20\mathrm{.}05$ per hour. For the $18,000$ units produced, $62,400$ hours were needed and employees were paid an hourly rate of $$19\mathrm{.}90$ per hour. The company uses a standard variable overhead cost per unit of $$0\mathrm{.}80$ per direct labor hour. Actual variable factory overhead was $$37,310.$ The company uses a standard fixed overhead cost per unit of $$1\mathrm{.}05$ per direct labor hour at $44,000$ hours, which is $100\%$ of normal capacity.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

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Prepare an income statement through gross profit for Alvarado Company for the month ending March $31.$ For those boxes in which you must enter subtractive or negative numbers use a minus sign. If an amount box does not require an entry, leave it blank.