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Check Answers Please Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Costs and Production Data
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Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual $2.00 11,000 $162,800 14,800 $203,200 Standard $1.90 10,600 $159,600 15,200 $205,200 41,500 $62,250 $3.00 $1.50 Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $450,000. Selling and administrative expenses were $35,000. 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 o decimal places, e.g. 52.) (1) Total materials variance 1,860 Unfavorable Materials price variance 1,100 Unfavorable Materials quantity variance 760 Unfavorable (2) Total labor variance 3,200 Favorable Labor price variance 7,600 Favorable Labor quantity variance 4,400 UnfavorableStep by Step Solution
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