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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