All-Star, Inc. uses a standard cost systern and provides the following information. (Click the icon to view the information.) All-Star allocates manufacturing avertinan 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 avstar, $5,000; actual fixed merhead, 33,200; actual direct labor hours, 1,700 Read the requirements Requirement 1. Compute the variable overead cost and elliciency variances and fixed overhead cost and volume variances. Begin with the variable owerhead cast and efficiency variances. Selec: 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 = foed overhead; SC = standard cost: SQ = standard quantity: VOH = variables overhead.) Formula Variance VOH Cost variance VOH efficiency variance Now compute the foed Overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whather 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) Formula Varianon FOH cost variance i Data Table FOH valuma variance = Requirement 2. Explain why the variancee are favorable or unfavorable. The variable owerhead cost variance is because the actual cost per direct latior hour was Y than the standard cost per direct labar hour. $ 1,500 $ 2,250 750 hours 375 unite The variable overhead etticiency variance is because management used Static budget variable overhead Static budget fixed averhad Static budget direcl labor hours Static budget number of units Standard direct labor hours Y direct labor hours than standard and variable overhead is applied incurred) based on direct labor The fixed avertised covariance is Y trescause the tatal fixed averat cost was than the amount budgeted for total fixed averhead 2 hours per unit The fixed overhead volume variance is because total fixed overhead cost allocated to units was than the total budgeted fixed overhead cost. Print Done Choose from any list or enter any number in the input fields and then continue to the next question. 2