1. Young, Inc. has gathered the following data on last years operations:

• Units produced: 28,000
• Direct labor: 20,000 hours at $9.00/hour
• Actual fixed overhead: $280,000
• Actual variable overhead: $92,000

Young employs a standard cost system. During the year, the following rates were used: standard fixed overhead rate, $12 per hour; standard variable overhead rate, $4.05 per hour. The labor standard requires 0.75 hours per unit produced. (These rates were based on a standard normal volume of 22,500 direct labor hours).

REQUIRED:

1. Compute the variable overhead spending and efficiency variances.

1. Compute the fixed overhead spending (or budget) and production-volume variances.