Ayala Corporation accumulates the following data relative to jobs started and fi

Question

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
$2.00
$1.82 Raw materials units used
11,300
10,740 Direct labor payroll
$174,330
$167,960 Direct labor hours worked
14,900
15,200 Manufacturing overhead incurred
$230,512

Manufacturing overhead applied


$233,472 Machine hours expected to be used at normal capacity


42,000 Budgeted fixed overhead for June


$67,200 Variable overhead rate per machine hour


$3.20 Fixed overhead rate per machine hour


$1.60
Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $475,000. Selling and administrative expenses were $43,200. Assume that the amount of raw materials purchased equaled the amount used.
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
$2.00
$1.82 Raw materials units used
11,300
10,740 Direct labor payroll
$174,330
$167,960 Direct labor hours worked
14,900
15,200 Manufacturing overhead incurred
$230,512

Manufacturing overhead applied


$233,472 Machine hours expected to be used at normal capacity


42,000 Budgeted fixed overhead for June


$67,200 Variable overhead rate per machine hour


$3.20 Fixed overhead rate per machine hour


$1.60
Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $475,000. Selling and administrative expenses were $43,200. Assume that the amount of raw materials purchased equaled the amount used. Costs and Production Data Actual Standard 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
$2.00
$1.82 Raw materials units used
11,300
10,740 Direct labor payroll
$174,330
$167,960 Direct labor hours worked
14,900
15,200 Manufacturing overhead incurred
$230,512

Manufacturing overhead applied


$233,472 Machine hours expected to be used at normal capacity


42,000 Budgeted fixed overhead for June


$67,200 Variable overhead rate per machine hour


$3.20 Fixed overhead rate per machine hour


$1.60
Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $475,000. Selling and administrative expenses were $43,200. Assume that the amount of raw materials purchased equaled the amount used.
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2014. Overhead is applied on the basis of standard machine hours. 3.20 hours of machine time are required for each direct labor hour. The jobs were sold for $475,000. Selling and administrative expenses were $43,200. 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.)

Explanation / Answer

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials

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