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 $2.10 $1.95

Raw materials units used 11,100 10,300

Direct labor payroll $165,000 $160,650

Direct labor hours worked 15,000 15,300

Manufacturing overhead incurred $232,308

Manufacturing overhead applied $235,008

Machine hours expected to be used at normal capacity 43,500

Budgeted fixed overhead for June $69,600

Variable overhead rate per machine hour $3.20

Fixed overhead rate per machine hour $1.60

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 $458,000. Selling and administrative expenses were $42,000. 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.