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

AYALA CORPORATION Income Statement .......... x For the Year Ended June 30, 2017 Sales Revenue Cost of Goods Sold (at standard) Gross Profit (at standard) Variances Unfavorable Materials Price Unfavorable Materials Quantity Unfavorable Labor Price Favorable Labor Quantity Favorable Overhead Unfavorable Total Variance Gross Profit (actual) Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Actual Costs and Production Data Standard Raw materials unit cost $2.00 $1.80 Raw materials units used 11,200 10,800 Direct labor payroll $177,310 $170,240 15,200 Direct labor hours worked 14,900 $225,608 Manufacturing overhead incurred Manufacturing overhead applied $228,608 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $62,250 Variable overhead rate per machine hour $3.20 $1.50 Fixed overhead rate per machine hour 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 $500,000. Selling and administrative expenses were $41,400. Assume the amount of raw materials purchased equaled the amount used