Problem 11-2A (Part Level Submission) (Video)
Ayala Corporation accumulates the following data relative to
jobs started and finished during the month of June 2020.
Costs and Production Data |
Actual |
Standard |
||
Raw materials unit cost | $2.40 | $2.25 | ||
Raw materials units | 11,200 | 10,500 | ||
Direct labor payroll | $171,350 | $164,160 | ||
Direct labor hours | 14,900 | 15,200 | ||
Manufacturing overhead incurred | $214,552 | |||
Manufacturing overhead applied | $216,752 | |||
Machine hours expected to be used at normal capacity | 43,500 | |||
Budgeted fixed overhead for June | $65,250 | |||
Variable overhead rate per machine hour | $3.10 | |||
Fixed overhead rate per machine hour | $1.50 |
Overhead is applied on the basis of standard machine hours. 3.10
hours of machine time are required for each direct labor hour. The
jobs were sold for $456,000. Selling and administrative expenses
were $42,400. Assume that the amount of raw materials purchased
equaled the amount used.
1) Prepare an income statement for management. (Ignore income taxes.)
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