Pharoah 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 | $2.30 | $2.20 | ||
Raw materials units | 11,100 | 10,300 | ||
Direct labor payroll | $170,200 | $164,160 | ||
Direct labor hours | 14,800 | 15,200 | ||
Manufacturing overhead incurred | $202,600 | |||
Manufacturing overhead applied | $205,200 | |||
Machine hours expected to be used at normal capacity | 43,500 | |||
Budgeted fixed overhead for June | $65,250 | |||
Variable overhead rate per machine hour | $3.00 | |||
Fixed overhead rate per machine hour | $1.50 |
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 $460,000. Selling and administrative expenses
were $42,100. Assume that the amount of raw materials purchased
equaled the amount used
Prepare an income statement for management. (Ignore income taxes.)
Answer:
Pharoah CORPORATION | ||
Income Statement | ||
For the Month Ended June 30, 2020 | ||
Amount($) | Amount($) | |
Sales revenue | 4,60,000 | |
Cost of goods sold (at standard)((10300*2.2)+164160+205200) | 3,92,020 | |
Gross profit (at standard) | 67,980 | |
Variances | ||
Materials price(2.30-2.20)*11100 | 1,110 | F |
Materials quantity(11100-10300)*2.20 | 1,760 | F |
Labor price(170200/14800)-(164160/15200)*14800 | 10,360 | F |
Labor quantity(14800-15200)*(164160/15200) | -4,320 | U |
Overhead(202600-205200) | -2,600 | U |
Total variance—favorable | 6,310 | |
Gross profit (actual) | 61,670 | |
Selling and administrative expenses | 42,100 | |
Net income | 25,690 | |
Pharoah Corporation accumulates the following data relative to jobs started and finished during the month of...
Pharoah 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 $2.30 $2.20 Raw materials units 11,100 10,300 Direct labor payroll $170,200 $164,160 Direct labor hours 14,800 15,200 Manufacturing overhead incurred $202,600 Manufacturing overhead applied $205,200 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $65,250 Variable overhead rate per machine hour $3.00 Fixed overhead rate per...
Pharoah 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 $2.30 $2.20 Raw materials units 11,100 10,300 Direct labor payroll $170,200 $164,160 15,200 Direct labor hours 14,800 $202.600 Manufacturing overhead incurred $205,200 Manufacturing overhead applied Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $65,250 Variable overhead rate per machine hour $3.00 Fixed overhead rate per...
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2020.Costs and Production DataActualStandardRaw materials unit cost$2.30$2.20Raw materials units11,10010,300Direct labor payroll$170,200$164,160Direct labor hours14,80015,200Manufacturing overhead incurred$202,600Manufacturing overhead applied$205,200Machine hours expected to be used at normal capacity43,500Budgeted fixed overhead for June$65,250Variable overhead rate per machine hour$3.00Fixed overhead rate per machine hour$1.50Overhead 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...
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.20 $2.00 Raw materials units used 11,200 10,300 Direct labor payroll $175,820 $169,830 Direct labor hours worked 14,900 15,300 Manufacturing overhead incurred $202,750 Manufacturing overhead applied $206,550 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $65,250 Variable overhead rate per machine hour $3.00 Fixed overhead...
Sarasota Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.30 $2.15 Raw materials units used 11,400 10,500 Direct labor payroll $172,840 $168,720 Direct labor hours worked 14,900 15,200 Manufacturing overhead incurred $223,276 Manufacturing overhead applied $226,176 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $73,950 Variable overhead rate per machine hour $3.10 Fixed overhead...
Sarasota Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.30 $2.15 Raw materials units used 11,400 10,500 Direct labor payroll $172,840 $168,720 Direct labor hours worked 14,900 15,200 Manufacturing overhead incurred $223,276 Manufacturing overhead applied $226,176 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $73,950 Variable overhead rate per machine hour $3.10 Fixed overhead...
Problem 23-2A (Part Level Submission) Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017 CALCULATOR PRINTER VERSION Standard Costs and Production Data Raw materials unit cost Raw materials units used Direct labor payroll Direct labor hours worked 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 Actual $2.20...
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.10 $1.90 Raw materials units used 11,300 10,700 Direct labor payroll $175,500 $171,360 Direct labor hours worked 15,000 15,300 Manufacturing overhead incurred $212,930 Manufacturing overhead applied $215,730 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $73,950 Variable overhead rate per machine hour $3.00 Fixed overhead...
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017 Costs and Production Data Raw materials unit cost Raw materials units used Direct labor payroll Direct labor hours worked 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 Actual Standard $2.10 $1.90 11,300 10,700 $175,500 $171,360 15.000 15.300 $212,930...
Concord 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 $2.20 Raw materials units 11,000 10,300 Direct labor payroll $162,800 $159,600 Direct labor hours 14,800 15,200 Manufacturing overhead incurred $217,464 Manufacturing overhead applied $221,464 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $66,400 Variable overhead rate per machine hour $3.10 Fixed overhead rate per...