Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020.
Costs and Production Data	Actual	Standard
Raw materials unit cost	$2.40	$2.25
Raw materials units	11,100	10,400
Direct labor payroll	$177,000	$171,360
Direct labor hours	15,000	15,300
Manufacturing overhead incurred	$204,550
Manufacturing overhead applied		$206,550
Machine hours expected to be used at normal capacity		41,500
Budgeted fixed overhead for June		$62,250
Variable overhead rate per machine hour		$3.00
Fixed overhead rate ner machine hour		$1.50

Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The Jobs were sold for $498,000. Selling and administrative expenses were $37,900. Assume that the amount of raw materials purchased equaled the amount used.

(a) Compute all of the variances for (1) direct materials and (2) direct labor.

(b) Compute the total overhead variance.

(c) Prepare an income statement for management. (Ignore income

taxes.)