Ayala Corporation accumulates the following data relative to jobs started and finished during the mo 1 answer below »

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 $2.20 $2.07 Raw materials units used 11,300 10,510 Direct labor payroll $178,500 $173,128 Direct labor hours worked 15,000 15,200 Manufacturing overhead incurred $217,594 Manufacturing overhead applied $221,464 Machine hours expected to be used at normal capacity 42,000 Budgeted fixed overhead for June $67,200 Variable overhead rate per machine hour $3.10 Fixed overhead rate per machine hour $1.60
Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $490,000. Selling and administrative expenses were $35,700. 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 answers to 0 decimal places, e.g. 125.)
(1) Total materials variance $ FavorableUnfavorable Materials price variance $ FavorableUnfavorable Materials quantity variance $ FavorableUnfavorable (2) Total labor variance $ FavorableUnfavorable Labor price variance $ FavorableUnfavorable Labor quantity variance $ FavorableUnfavorable

Compute the total overhead variance.
Total overhead variance $ FavorableUnfavorable

LINK TO TEXT Prepare an income statement for management. (Ignore income taxes.) (Round answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

AYALA CORPORATION
Income Statement
For the Month Ended June 30, 2014

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