Problem 23-2A (Part Level Submission) Ayala Corporation accurnulates the followi

Question

Problem 23-2A (Part Level Submission) Ayala Corporation accurnulates the following data relative to jobs started and finished during the morith of lure 2017 Costs and Production Data Actual Standard $2.25 10,500 $179,500 $173,280 15,000 15,200 Raw materials unit cost Raw materials units used Direct laber payroll Direct labor hours worked Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal apacity Budgeted fxed overhead for June Variable averhead rate per machine hour Fixed overhead rate per machine hour $2.40 11,300 $235,736 $238,336 42,500 $72,250 $3.20 $1.70 Overhead is applied on the basis of standard nachine hours. 3.20 hours af machine time are required for each direct labor haur. The jobs were sald far $450,000. Selling and admirnistrative expenses were $44,300. Assume that the amount of raw materials purchased equaled the amount used (a) Compute all of the variances for (1) direct materials and (2) direct labor (Round answers to o decimal places, e.g. 125.) (1) Total materials variance Materials price variance Materials quantity variance (2) Total labor variance Labor price variance Labor quantity vanance

Explanation / Answer

1 Total Material Varaiance (Standard Quantity*Standard Price)-(Actual Quantity*Actual Price)    OR Material Price+ Material Quantity Variance                                                                          (3,495.00) Adverse Material Price Variance (Standard Price-Actual Price)*Actual Quantity                                                                           (1,695.00) Adverse Material Quantity Variance (Standard Quantity-Actual Quantity)*Standard Price                                                                           (1,800.00) Adverse 2 Total Labour Variance (Standard Hours*Standard Price)-(Actual Hours*Actual Price)    OR Labour Price+ Labour Quantity Variance                                                                      (148,758.00) Adverse Labour Price Variance (Standard Price-Actual Price)*Actual Hours                                                                        (89,250.00) Adverse Standard Price Standard Direct Labour Payroll/Standard Direct Labour Hours Worked 11.40 Actual Price Actual Direct Labour Payroll/Actual Direct Labour Hours Worked 11.90 Labour Quantity Variance (Standard Hours-Actual Hours)*Standard Price                                                                        (59,508.00) Adverse

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