Income statement with variances

Bellingham Company produces a product that requires 2.5 standard pounds per unit at a standard price of $3.00 per pound. Assume Bellingham sold 19,000 units at $162 per unit. The company used 35,000 pounds to produce 19,000 units, which were purchased at $3.25 per pound. Each unit requires 3 standard direct labor hours per unit at a standard hourly rate of $20.05 per hour. For the 19,000 units produced, 62,200 hours were needed and employees were paid an hourly rate of $19.90 per hour. The company uses a standard variable overhead cost per unit of $0.80 per direct labor hour. Actual variable factory overhead was $30,400. The company uses a standard fixed overhead cost per unit of $1.05 per direct labor hour at 45,000 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.

Open spreadsheet

Prepare an income statement through gross profit for Bellingham 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.

Bellingham Company
Income Statement Through Gross Profit
For the Month Ended 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 - unfavorable
Gross profit						$

Prepare an income statement through gross profit for Bellingham 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. Bellingham Company Income Statement Through Gross Profit For the Month Ended March 31 $ Sales 3,078,000 Cost of goods sold - at standard 1,390,800 $ Gross profit - at standard 1,687,200 Favorable Unfavorable Variances from standard cost: $ Direct materials price 0 Direct materials quantity DEL Direct labor rate Direct labor time o Factory overhead controllable 0 Factory overhead volume 0 Net variances from standard cost - unfavorable -0 X $ Gross profit 1,687,200 x