Question: I need help with how to do the income statement for the variances. Thank you. Practice Problem 1 (Part Level Submission) Ayala Corporation accumulates the
Practice Problem 1 (Part Level Submission) Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.10 10,700 $175,500 $167,200 $2.20 11,400 Raw materials units used Direct labor payroll Direct labor hours worked 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 15,000 $202.600 15,200 $205,200 43.500 $65,250 $3.00 $1.50 Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour 7 purchased equaled the amount used
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