P$11\mathrm{.}2($LO $2,3,4),$ AP Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June $2022.$

Costs and Production Data Actual Standard

Raw materials unit cost

Raw materials units

Direct labor payroll

Direct labor hours

Manufacturing overhead incurred

Manufacturing overhead applied

$$2\mathrm{.}25$

$$2\mathrm{.}10$

Machine hours expected to be used at normal capacity

Budgeted fixed overhead for June

Variable overhead rate per machine hour

$10,000$

Fixed overhead rate per machine hour

$$120,000$

$15,000$

$$193,500$

$42,500$

$$55,250$

$$3\mathrm{.}00$

$$1\mathrm{.}30$

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 $$400,000.$ Selling and administrative expenses were $$40,000.$ 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.

LQV $$4,800F$

b$.$ Compute the total overhead variance.

c$.$ Prepare an income statement for management. $($Ignore income taxes.$)$