Ayala Corporation accumulates the following data relative to jobs started and finished during the month...
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Accounting
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.
Cost and Production Data Actual Standard
Raw materials unit cost 2.25 2.10
Raw materials units used 10600 10000
Direct Labor payroll 120960 120000
direct labor hours worked 14400 15000
manufacturing overhead incurred 189500
manufacturing overhead applied 193500
machine hours expected to be used at normal capacity 42500
budgeted fixed overhead for June 55250
variable overhead rate per machine hour 3.00
fixed overhead rate per machine hour 1.30
overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for 400,000. Selling and administraive expenses were 40,000. Assume that the total amount of raw materials purchased equaled the amount used.
a) compute all of the variances for (1) direct materials and (2) direct labor
b) compute the total ovehead variance
c)prepare an income statement for management.
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