Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017 Costs and Production Data Actual Standard $2.20 Raw materials unit cost $2.30 11,100 Raw materials units used 10,400 Direct labor payroll $174,640 $171,360 Direct labor hours worked 14,800 15,300 Manufacturing overhead incurred Manufacturing overhead applied $214,678 $218,178 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $65,250 Variable overhead rate per machine hour $3.10 Fixed overhead rate per machine hour $1.50 Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $476,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used. AYALA CORPORATION Income Statement For the Month Ended June 30, 2017 476,000 Sales Revenue Gross Profit (at standard) Gross Profit (actual) Variances 1,110 Unfavorable Materials Price Unfavorable 1540 Materials Quantity 8880 Unfavorable Labor Price Favorable 5600 Labor Quantity 3500 Favorable Overheac Favorable Total Variance Gross Profit (at standard) Selling and Administrative Expenses Net Income (Loss)