Plastic Company manufactures one product, called XXY, used in the plastic industry. The company prepares its budget on the basis of standard costs. The following planned and actual data are for December 2018.

	XXY
Standard Data:
Direct Materials	4 kg @ 1.10/Kg
Direct Labor	6 hs @ 5/hour
Variable Overhead (per DL hour)	3.50
Fixed Overhead	26,520
Expected Activity (in DL hours)	7,800 DL hours
Actual Data:
Direct Materials	4,700 Kg @ 1.15/Kg
Direct Labor	7,400 hours @ 5.10/hour
Variable Overhead	25,234
Fixed Overhead	26,400
Units Produced	1,200

Required:

1. Prepare a variance analysis for each variable cost component of XXY (hint: actual quantities of direct materials that were purchased equal the actual direct material quantities used into production).
2. Prepare a fixed overhead variance analysis, assuming that Plastic Company applies fixed overhead based on expected volumes (i.e., units).