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		$2.40		$2.25
Raw materials units		11,100		10,400
Direct labor payroll		$177,000		$171,360
Direct labor hours		15,000		15,300
Manufacturing overhead incurred		$204,550
Manufacturing overhead applied				$206,550
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 $498,000. Selling and administrative expenses were $37,900. Assume that the amount of raw materials purchased equaled the amount used.

(b)

Compute the total overhead variance.

Total overhead variance

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