Income Statement with Variances Dvorak Company produces a product that requires
ID: 2779065 • Letter: I
Question
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.
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
$
HideDvorak 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
$
Explanation / Answer
Sales $90000 Cost of goods sold @ standard $698000 Gross profit @ standard 20200 Favorable Unfavorable Less variances from standard cost Direct materials price 2250 Direct materials quantity 1250 Direct labor rate 1400 Direct labor time 3400 Factory Overhead Controllable ___________ ______________ 200 Factory Overhead Volume 4000 gross profit 24200