Question 8 Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2014.

Costs and Production Data	Actual	Standard
Raw materials unit cost	$4.10	$3.95
Raw materials units used	11,100	10,680
Direct labor payroll	$168,000	$161,415
Direct labor hours worked	15,000	15,300
Manufacturing overhead incurred	$212,690
Manufacturing overhead applied	$215,730
Machine hours expected to be used at normal capacity	42,000
Budgeted fixed overhead for June	$71,400
Variable overhead rate per machine hour	$3.00
Fixed overhead rate per machine hour	$1.70

Overhead is applied on the basis of standard machine hours.3.00hours of machine time are required for each direct labor hour. The jobs were sold for $466,000. Selling and administrative expenses were $40,200. Assume that the amount of raw materials purchased equaled the amount used.

(a)

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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	$	FavorableUnfavorableNot Applicable
Materials price variance	$	FavorableUnfavorableNot Applicable
Materials quantity variance	$	FavorableUnfavorableNot Applicable
(2)	Total labor variance	$	FavorableUnfavorableNot Applicable
Labor price variance	$	FavorableUnfavorableNot Applicable
Labor quantity variance	$	FavorableUnfavorableNot Applicable