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$2.00$1.85Raw materials units11,50010,900Direct labor payroll$163,900$159,600Direct labor hours14,90015,200Manufacturing overhead incurred$223,976Manufacturing overhead applied$226,176Machine hours expected to be used at normal capacity42,500Budgeted fixed overhead for June$72,250Variable overhead rate per machine hour$3.10Fixed overhead rate per machine hour$1.70

Overhead is applied on the basis of standard machine hours.3.10hours of machine time are required for each direct labor hour. The jobs were sold for $456,000. Selling and administrative expenses were $36,500. 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.(Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)

(1)Total materials variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Materials price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Materials quantity variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

(2)Total labor variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Labor price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Labor quantity variance