Problem 24-02A

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 $ Materials price variance $ Materials quantity variance $ (2) Total labor variance $ Labor price variance Labor quantity variance Compute the total overhead variance. Total overhead variance SHOW LIST OF ACCOUNTS LINK TO TEXT 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 o decimal places, e.g. 52.) AYALA CORPORATION Income Statement