Problem 23-2A (Part Level Submission)

Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.

Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.00		$1.85
Raw materials units used		11,500		10,900
Direct labor payroll		$163,900		$159,600
Direct labor hours worked		14,900		15,200
Manufacturing overhead incurred		$223,976
Manufacturing overhead applied				$226,176
Machine hours expected to be used at normal capacity				42,500
Budgeted fixed overhead for June				$72,250
Variable overhead rate per machine hour				$3.10
Fixed overhead rate per machine hour				$1.70

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 $36,500. 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 answers to 0 decimal places, e.g. 125.)

(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