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 $2.10 $1.90 Raw materials units 11,300 10,900 Direct labor payroll $168,720 $166,770 Direct labor hours 14,800 15,300 Manufacturing overhead incurred $232,608 Manufacturing overhead applied $235,008 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $66,400 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 $492,000. Selling and administrative expenses were $39,400. 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 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		$		FavorableUnfavorableNeither favorable nor unfavorable
		Materials price variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Materials quantity variance		$		FavorableUnfavorableNeither favorable nor unfavorable
(2)		Total labor variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Labor price variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Labor quantity variance		$		FavorableUnfavorableNeither favorable nor unfavorable

(b) Compute the total overhead variance.

(c) Prepare an income statement for management. (Ignore income taxes.) *** PLEASE COMPLETE FULL PROBLEM