Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and actual quantity, FOH= fixed overhead, SC standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance = = Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify wi overhead, SC standard cost, SQ = standard quantity) Direct materials efficiency variance Direct labor efficiency variance Formula # Variance