Problem 11-2A (Part Level Submission) Ayala Corporation accumulates the followin
ID: 2500745 • Letter: P
Question
Problem 11-2A (Part Level Submission) Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2014. Costs and Production Data Actual Standard Raw materials unit cost $2.00 $1.87 Raw materials units used 11,300 10,510 Direct labor payroll $169,860 $162,640 Direct labor hours worked 14,900 15,200 Manufacturing overhead incurred $212,180 Manufacturing overhead applied $214,320 Machine hours expected to be used at normal capacity 42,000 Budgeted fixed overhead for June $71,400 Variable overhead rate per machine hour $3.00 Fixed overhead rate per machine hour $1.70 Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $454,000. Selling and administrative expenses were $42,500. Assume that the amount of raw materials purchased equaled the amount used. a)(a) & (b) Correct answer. Your answer is correct. Compute all of the variances for (1) direct materials and (2) direct labor. (Round answers to 0 decimal places, e.g. 125.) (1) Total materials variance $Entry field with correct answer 2946 Entry field with correct answer Materials price variance $Entry field with correct answer 1469 Entry field with correct answer Materials quantity variance $Entry field with correct answer 1477 Entry field with correct answer (2) Total labor variance $Entry field with correct answer 7220 Entry field with correct answer Labor price variance $Entry field with correct answer 10430 Entry field with correct answer Labor quantity variance $Entry field with correct answer 3210 Entry field with correct answer Compute the total overhead variance. Total overhead variance $Entry field with correct answer 2140 Entry field with correct answer
C)(c) Prepare an income statement for management. (Ignore income taxes.) (Round answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) AYALA CORPORATION Income Statement For the Month Ended June 30, 2014 $ $ $
I just need help with the income statement.
Explanation / Answer
Income Statement will be prepared on Actual Basis, Hence Actual Cots have been Considered.
Income Statement Particulars Amount Sales Revenue 454000 Less: Expenses Raw Material Cost (2*11300) 22600 Direct Labour Cost 169860 Manufacturing Overheads incurred 212180 Selling & Administration Expenses 42500 Total Expenses 447140 Net Income 6860