Question

Problem 25-2A Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.00 $1.85 Raw materials units used 11,500 10,900 Direct labor payroll $163,900 $159,600 Direct labor hours worked 14,900 15,200 Manufacturing overhead incurred $223,976 Manufacturing overhead applied $226,176 Machine hours expected to be used at normal capacity 42,500 Budgeted fixed overhead for June $72,250 Variable overhead rate per machine hour $3.10 Fixed overhead rate per machine hour $1.70 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 $456,000. Selling and administrative expenses were $36,500. 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 $ Materials price variance $ Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance $ Link to Text Link to Text Link to Text Compute the total overhead variance. Total overhead variance $ Link to Text Link to Text Link to Text Prepare an income statement for management. (Ignore income taxes.) (Round answers to 0 decimal places, e.g. 125.) AYALA CORPORATION Income Statement $ $ $ Link to Text Link to Text Link to Text Question Attempts: Unlimited Save for later Submit Answer

Answer 1