Problem 2 Ac€?o Company Y The expected activity for company Y was to sell 5,000 units in 2014. Company Y actually ended up selling 5,300 units. Company Y expected to have fixed overhead expenses that totaled $125,000 and had the following standard information for variable costs: Manufacturing cost Requirement Cost per ft per hour Cost per unit Direct materials 2 feet per unit $1 per foot $2 Direct labor 4 hours per unit $15 per hour $60 Variable overhead 3 hours per unit $1 per hour $27
Actual direct materials used were 11,000 feet and the company purchased 12,000 feet during the year at a price of $11, 500. The actual labor usage was 19,600 hours, and total wages paid were $296,940. The actual amount spent on variable overhead was $55,860 and on fixed overhead $129,000.
Calculate the material spending and efficiency variance, the labor spending and efficiency variance, the variable overhead spending and efficiency variance and the fixed overhead spending and production-volume variance.
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