P11.2A (LO 2, 3, 4), AP Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. ActualStandard $2.10 10,000 $120,000 15,000 Excel $2.25 10,600 $120,960 14,400 $189,500 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 $193,500 42,500 $55,250 $3.00 $1.30 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hou S40,000. Assume that the amount of raw materials purchased equaled the amount used. r. The jobs were sold for $400,000. Selling and administrative expenses were Instructions a. Compute all of the variances for (1) direct materials and (2) direct labor b. Compute the total overhead variance. c. Prepare an income statement for management. (Ignore income taxes.)