All-Star, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) All-Star allocates manufacturing overhead to production based on standard direct labor hours. All-Star reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $2,500; actual fixed overhead, $2,600; actual direct labor hours, 1,500. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) VOH cost variance VOH efficiency variance Formula (AQ - SQ) AC (AC -SC) SQ Variance Data table Help me solve this Demodocs example Get more help Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $1,200 $1,600 800 hours 400 units 2 hours per unit all Check answer Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost a quantity, FOH = fixed overhead; SC standard cost; SQ-standard quantity.) Formula Variance Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours FOH cost variance FOH volume variance Requirement 2. Explain why the variances are favorable or unfavorable. Print The variable overhead cost variance is The variable overhead efficiency variance is The fixed overhead cost variance is The fixed overhead volume variance is because the actual cost per direct labor hour was because management used because the total fixed overhead cost was than the standard cost per direct labor hour. direct labor hours than standard and variable overhead is applied (incu than the amount budgeted for total fixed overhead. because total fixed overhead cost allocated to units was than the total budgeted fixed overhead cost