Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.

Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.40		$2.30
Raw materials units used		11,000		10,600
Direct labor payroll		$170,200		$167,200
Direct labor hours worked		14,800		15,200
Manufacturing overhead incurred		$230,372
Manufacturing overhead applied				$233,472
Machine hours expected to be used at normal capacity				43,500
Budgeted fixed overhead for June				$69,600
Variable overhead rate per machine hour				$3.20
Fixed overhead rate per machine hour				$1.60

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 $471,000. Selling and administrative expenses were $45,000. 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.

Compute the total overhead variance.

prepare an income statement for management.