During the month of July 2020 Invention Co. calculates the following data for jobs started and finished: Cost and Production Data Actual Standard Raw materials unit cost $ 2.25 $ 2.00 Raw materials units used 10,600 10,000 Direct labour payroll $122,400 $120,000 Direct labour hours worked 14,400 15,000 Manufacturing overhead incurred $184,500 Manufacturing overhead applied $189,000 Machine hours expected to be used at normal capacity 42,500 Budgeted fixed overhead for July $ 51,000 Variable overhead rate per hour S 3.00 Fixed overhead rate per hour S 1.20 Standard machine hours are used for overhead calculations. Three hours of machine time are required for each direct labour hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equalled the amount used. Required a. Calculate all of the materials and labour variances. b. Calculate the total overhead variances. c. Calculate the overhead budget variance and the overhead volume variance. d. Ignoring taxes, prepare an income statement for management