# Problem 2 Ac€?o Company Y The expected activity for company Y was to sell 5,000 units in 2014. Co

Problem 2 Ac€?o Company Y The expected activity for company Y was to sell 5,000 units in 2014. Co

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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