Problem 11-2A (Part Level Submission) (Video)

Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020.

Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.40		$2.25
Raw materials units		11,200		10,500
Direct labor payroll		$171,350		$164,160
Direct labor hours		14,900		15,200
Manufacturing overhead incurred		$214,552
Manufacturing overhead applied				$216,752
Machine hours expected to be used at normal capacity				43,500
Budgeted fixed overhead for June				$65,250
Variable overhead rate per machine hour				$3.10
Fixed overhead rate per machine hour				$1.50

Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $456,000. Selling and administrative expenses were $42,400. Assume that the amount of raw materials purchased equaled the amount used.

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