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Income Statement with Variances Dvorak Company produces a product that requires five standard pounds per unit The standard price is $250 per pound Assume the company produced 1000 units of

Income Statement with Variances

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".

Please can you show me your work so I can learn how to do this myself so I can take the test.

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Dvorak Company

Income Statement Through Gross Profit

For the Year Ended December 31, 2014

Sales

         

$  

Cost of goods sold-at standard

         

  

Gross profit-at 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

         

$  

May 02 2020 View more View Less

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