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Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.25 $2 10,600 10,000 $120,960 $120,000 14,400 15,000 $189,500 $193,500 42,500 $55,250 $3 $1.3 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hou jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purc equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Materials price variance Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance

Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.25 $2 10,600 10,000 $120,960 $120,000 14,400 15,000 $189,500 $193,500 42,500 $55,250 $3 $1.3 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hou jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purc equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Materials price variance Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.25 $2 10,600 10,000 $120,960 $120,000 14,400 15,000 $189,500 $193,500 42,500 $55,250 $3 $1.3 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hou jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purc equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Materials price variance Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance
Transcribed Image Text:Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.25 $2 10,600 10,000 $120,960 $120,000 14,400 15,000 $189,500 $193,500 42,500 $55,250 $3 $1.3 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hou jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purc equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 52.) (1) Total materials variance $ Materials price variance Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance
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