Kate Company has established the following standards for the production of its finished units: (*the fixed overhead rate was based on a budgeted production level of 8, 000 units) The following information is available for the year 2016: Actual production for the period was 9, 000 units. 80, 000 pounds of material were purchased for $4.15 per pound. 74, 000 pounds of material were used in production. 30, 000 direct labor hours were incurred and the actual labor rate paid was $17.50 per direct labor hour. The total actual variable overhead costs incurred were $510, 000 and the total actual fixed overhead costs incurred were $380, 000. 44, 000 machine hours were used. 8, 500 units were sold for $275 per unit cash. Compute the eight production variances--be sure to label each variance and indicate whether the variance is favorable or unfavorable. Prepare ALL of the standard costing journal entries necessary. What amount of gross profit will be reported on the 2016 income statement