Dvorak Company produces a product that requires five standard pounds per unit. The standard price is $2.50 per pound. Assume the company produced 1,000 units of product. 1,000 units required 4,500 pounds, which were purchased at $3.00 per pound. The product requires three standard hours per unit at a standard hourly rate of $17 per hour. The 1,000 units required 2,800 hours at an hourly rate of $16.50 per hour. The standard variable overhead cost per unit is $1.40 per hour. The actual variable factory overhead was $4,000. The standard fixed overhead cost per unit is $0.60 per hour at 3,500 hours, which is 100% of normal capacity.
Prepare a 2014 income statement through gross profit for Dvorak Company. Assume Dvorak sold 1,000 units at $90 per unit. Enter all amounts as positive numbers. If an amount does not require an entry or is zero, enter "0".
income statement:
Sales __________
Cost of goods sold @ standard __________
Gross profit @ standard __________
Favorable Unfavorable
Less variances from standard cost
Direct materials price __________ _____________
Direct materials quantity __________ _____________
Direct labor rate __________ ______________
Direct labor time ___________ ______________
Factory Overhead Controllable ___________ ______________
Factory Overhead Volume ___________ _______________ _______________
gross profit _______________