50.1K

Verified Solution

Link Copied!

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".

Dvorak Company Income Statement Through Gross Proft For the Year Ended December 31,2014 Sales 90000 Cost of goods sold-at standard 69800 Gross profit-at standard 20200 avorable Unfavorable s variances from standard cost: Direct materials price Direct materials quantity Direct labor rate -2250 1250 1500 Direct labor time 3400 Factory overhead controllable 200 Factory overhead volume 300 3700 Gross profit 24200

Answer & Explanation Solved by verified expert

See Answer