Income statement with variances Instructions Income Statement Instructions Alvarado Company produces a product that requires 3.0 standard pounds per unit at a standard price of $6.00 per pound. The company used 23,900 pounds to produce 8,000 units, which were purchased at $6.20 per pound. Each unit requires 7.5 standard direct labor hours per unit at a standard hourly rate of $22.50 per hour. For the 8,000 units produced, 60,200 hours were needed and employees were paid an hourly rate of $21.95 per hour. The company uses a standard variable overhead cost per unit of $1.45 per direct labor hour. Actual variable factory overhead was $85,900. The company uses a standard fixed overhead cost per unit of $2.00 per direct labor hour at 55,000 hours, which is 100% of normal capacity. Required: Prepare an income statement through gross profit for Alvarado Company for the month ended March 31. Assume Alvarado sold 8,000 units at $250 per unit. eBook Instructions Income Statement Show Me How 1 Sales 2 Cost of goods sold-at standard 3 Gross profit-at standard 4 5 Variances from standard cost Direct materials price 7 Direct materials quantity Direct labor rate 9 Direct labor time 10 Factory overhead controllable 11 Factory overhead volume 12 Net variances from standard cost-favorable 15 Gross profit For the Month Ended March 31 Unfavorable Favorable Instructions Income Statement Prepare an income statement through gross profit for Alvarado Company for the month ended March 31. Assume Alvarado sold 8,000 units at $250 per unit Income Statement Instruction Alvarado Company Income Statement Through Gross Profit For the Month ended March 31