Problem 24-02A (Part Level Submission)

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		$2.20		$2.10
Raw materials units		11,400		10,700
Direct labor payroll		$175,500		$167,200
Direct labor hours		15,000		15,200
Manufacturing overhead incurred		$202,600
Manufacturing overhead applied				$205,200
Machine hours expected to be used at normal capacity				43,500
Budgeted fixed overhead for June				$65,250
Variable overhead rate per machine hour				$3.00
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 $492,000. Selling and administrative expenses were $39,500. Assume that the amount of raw materials purchased equaled the amount used.

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 For the Year Ended June 30, 2020For the Month Ended June 30, 2020June 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
		Neither favorable nor unfavorableUnfavorableFavorable
		FavorableNeither favorable nor unfavorableUnfavorable
		UnfavorableFavorableNeither favorable nor unfavorable
		Neither favorable nor unfavorableUnfavorableFavorable
DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances		UnfavorableFavorableNeither favorable nor unfavorable
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			$

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