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 80 Raw materials units 11,200 10,800 Direct labor payroll $177,310 $170,240 Direct labor hours 14,900 15,200 Manufacturing overhead incurred $225,608 Manufacturing overhead applied $228,608 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 20 Fixed overhead rate per machine hour $1 50 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 $500,000 Selling and administrative expenses were $41,400 Assume that the amount of raw materials purchased equaled the amount used Your answer is partially correct Try again Compute all of the variances for (1) direct materials and (2) direct labor Compute the total overhead variance Prepare an income statement for management (Ignore income taxes ) (Round per unit values to 2 decimal places, e g 52 75 and final answers to 0 decimal places, e g 52 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 28, 2024

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

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	$1.80
Raw materials units	11,200	10,800
Direct labor payroll	$177,310	$170,240
Direct labor hours	14,900	15,200
Manufacturing overhead incurred	$225,608
Manufacturing overhead applied		$228,608
Machine hours expected to be used at normal capacity		41,500
Budgeted fixed overhead for June		$62,250
Variable overhead rate per machine hour		$3.20
Fixed overhead rate per machine hour		$1.50

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 $500,000. Selling and administrative expenses were $41,400. Assume that the amount of raw materials purchased equaled the amount used.


	Your answer is partially correct. Try again.

Compute all of the variances for (1) direct materials and (2) direct labor.. Compute the total overhead variance.Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)