Question

Problem 23-2A (Part Level Submission) 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 $2.40 $2.25 Raw materials units used 11,100 10,400 Direct labor payroll $177,000 $171,360 Direct labor hours worked 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 Collapse question part (c) Prepare an income statement for management. (Ignore income taxes.) (Round answers to 0 decimal places, e.g. 125.) AYALA CORPORATION Income Statement $ $ $ Click if you would like to Show Work for this question: Open Show Work

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Working notes for the above answer is as under