Income statement with variances Instructions 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 a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Instructions Income Statement Bellingham Company Income Statement Through Gross Profit For the Month Ended March 31 1 Sales 2 Cost of goods sold-at standard 3 Gross profit-at standard 4 Favorable Unfavorable 5 Variances from standard cost: 6 Direct materials price 7 Direct materials quantity 8 Direct labor rate 9 Direct labor time 10 Factory overhead controllable 11 Factory overhead volume 12 Net variances from standard cost-favorable 13 Gross profit