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Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017 Standard $2.25 10,500 $178,500 $173,280 15,200 Costs
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017 Standard $2.25 10,500 $178,500 $173,280 15,200 Costs and Production Data Actual Raw materials unit cost Raw materials units used Direct labor payroll Direct labor hours worked Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour $2.40 11,300 15,000 $235,736 $238,336 42,500 $72,250 $3.20 $1.70 Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $450,000. Selling and administrative expenses were $44,300. Assume that the amount of raw materials purchased equaled the amount used. Compute all of the variances for (1) direct materials and (2) direct labor. (Round answers to O decimal places, e.g. 125.) (1) Total materials variance Materials price variance Materials quantity variance 3495 Unfavorable 1695 Unfavorable 1800 Unfavorable (2) Total labor variance Labor price variance Labor quantity variance Compute the total overhead variance. Total overhead variance Prepare an income statement for management. (Ignore income taxes.) (Round answers to O decimal places, e.g. 125.)
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