Blue Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.

Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.40		$2.20
Raw materials units used		11,000		10,100
Direct labor payroll		$177,600		$173,280
Direct labor hours worked		14,800		15,200
Manufacturing overhead incurred		$235,636
Manufacturing overhead applied				$238,336
Machine hours expected to be used at normal capacity				41,500
Budgeted fixed overhead for June				$70,550
Variable overhead rate per machine hour				$3.20
Fixed overhead rate per machine hour				$1.70

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 $467,000. Selling and administrative expenses were $36,500. 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 answers to 0 decimal places, e.g. 135.)

> Prepare an income statement for management. (Ignore income taxes.) (Round answers to 0 decimal places, e.g. 135.)

Compute all of the variances for (1) direct materials and (2) direct labor. (Round answers to 0 decimal places, e.g. 135.) (1) S Total materials variance Materials price variance $ (2) Total labor variance > Favorable Unfavorable Neither favorable nor unfavorable