a) Total Materials Variance:

Materials price Variance:

Material Quantity Variance:

a) (2) Total Labor Variance:

Labor price Variance:

Labor Quantity Variance:

b) Total Overhead Variance

C)

Nadal Corporation accumulates the following data relative to jobs started and finished during the month of June 2018. Cost and Production Data Raw materials unit cost Raw materials units used Direct labor payroll Direct labor hours worked Manufacturing overhead incurred 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 $2.00 10,000 $105,000 15,000 $170,500 Standard S2.25 9,750 S103,000 16,000 40,000 $50,000 $3.10 $1.10 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 $410,000. Selling and administrative expenses were $50,000. Assume that the amount of raw materials purchased equaled the amount used, Instructions (a) Compute all of the variances for (1) direct materials and (2) direct labor (b) Compute the total overhead variance. (e) Prepare an income statement for management (Ignore income taxes). Make sure you identify the company, type of financial report and the period. Also, make sure you identify if the variance is Favorable (F) or unfavorable (U). (c) F/U Sales revenue Cost of goods sold (at standard) Gross profit (at standard) Variances Material price Materials quantity Labor price Labor quantity Overhead Total variance - favorable Gross profit (actual) Selling and administrative expenses Net income 1