P11.2 (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 Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Actual $2.25 10,600 $120,960 14,400 $189,500 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 Standard $2.10 10,000 $120,000 15,000 $193,500 42,500 $55,250 $3.00 $1.30 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 $200 a. Compute all of the variances for (1) direct materials and (2) direct labor. LQV $4,800 F b. Compute the total overhead variance. c. Prepare an income statement for management. (Ignore income taxes.)

P11.2 (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 Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Actual $2.25 10,600 $120,960 14,400 $189,500 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 Standard $2.10 10,000 $120,000 15,000 $193,500 42,500 $55,250 $3.00 $1.30 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 $200 a. Compute all of the variances for (1) direct materials and (2) direct labor. LQV $4,800 F b. Compute the total overhead variance. c. Prepare an income statement for management. (Ignore income taxes.)

Name: P11.2 (LO 2, 3, 4), AP Ayala Corporation accumulates the following da
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Description: P11.2 (LO 2, 3, 4), AP Ayala Corporation accumulates the following data relative to jobs startedand finished during the month of June 2022.Costs and Production DataInstructionsRaw materials unit costRaw materials unitsDirect labor payrollDirect labo

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 10.11E

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