$P24\mathrm{.}2$ Prepare $an$ variances, and prepare income statement

Ayala Corporation accumulates the following data relative $to$ jobs started and

finished during the month $of$ June $2025.$

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.

$b.$ Compute the total overhead variance.

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

NOTE: Enter a formula, a cell reference, $or$ a value $(if$ you are unable $to$ reference $a$

cell$),$ into the yellow shaded input cells.