Income statement with variancesInstructionsIncome StatementInstructionsAlvarado Company produces a product that requires 3.0 standard pounds per unit at a standard price of $6.00 per pound. The companyused 23,900 pounds to produce 8,000 units, which were purchased at $6.20 per pound. Each unit requires 7.5 standard direct labor hoursper unit at a standard hourly rate of $22.50 per hour. For the 8,000 units produced, 60,200 hours were needed and employees were paidan hourly rate of $21.95 per hour. The company uses a standard variable overhead cost per unit of $1.45 per direct labor hour. Actualvariable factory overhead was $85,900. The company uses a standard fixed overhead cost per unit of $2.00 per direct labor hour at 55,000hours, which is 100% of normal capacity.Required:Prepare an income statement through gross profit for Alvarado Company for the month ended March 31. Assume Alvarado sold8,000 units at $250 per unit.

Income statement, balance sheet and cash flow statement are the three main financial statement…

Answered: Required: Prepare an income statement…

Required: Prepare an income statement through gross profit for Alvarado Company for the month ended March 31. Assume Alvarado sold 8,000 units at $250 per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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