Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.20		$2.08
Raw materials units used		11,200		10,530
Direct labor payroll		$177,000		$171,608
Direct labor hours worked		15,000		15,200
Manufacturing overhead incurred		$205,890
Manufacturing overhead applied				$209,760
Machine hours expected to be used at normal capacity				42,000
Budgeted fixed overhead for June				$67,200
Variable overhead rate per machine hour				$3.00
Fixed overhead rate per machine hour				$1.60

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 $464,000. Selling and administrative expenses were $38,700. 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.

Compute the total overhead variance

Prepare an income statement for management. (Ignore income taxes.)