| | Problem 11-2A (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 | | $2.00 | | $1.90 | | Raw materials units | | 11,000 | | 10,600 | | Direct labor payroll | | $162,800 | | $159,600 | | Direct labor hours | | 14,800 | | 15,200 | | Manufacturing overhead incurred | | $203,200 | | | | Manufacturing overhead applied | | | | $205,200 | | Machine hours expected to be used at normal capacity | | | | 41,500 | | Budgeted fixed overhead for June | | | | $62,250 | | Variable overhead rate per machine hour | | | | $3.00 | | Fixed overhead rate per machine hour | | | | $1.50 | 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 $450,000. Selling and administrative expenses were $35,000. 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. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) | (1) | | Total materials variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | | | Materials price variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | | | Materials quantity variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | (2) | | Total labor variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | | | Labor price variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | | | Labor quantity variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | | | | | Compute the total overhead variance. | Total overhead variance | | $ | | FavorableUnfavorableNeither favorable nor unfavorable | | | | | | Prepare an income statement for management. (Ignore income taxes.) (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.) | AYALA CORPORATION Income Statement June 30, 2020For the Month Ended June 30, 2020For the Year Ended June 30, 2020 | | | | | $ | | | | | | | DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances | | | | | DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances | | | | | | $ | Neither favorable nor unfavorableUnfavorableFavorable | | | | | FavorableNeither favorable nor unfavorableUnfavorable | | | | | UnfavorableNeither favorable nor unfavorableFavorable | | | | | Neither favorable nor unfavorableUnfavorableFavorable | | | | | UnfavorableFavorableNeither favorable nor unfavorable | | | DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances | | FavorableNeither favorable nor unfavorableUnfavorable | | | DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances | | | | | | | | | | DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances | | | $ | | | | |
