Best Fender uses a standard cost system and provide the following information: Click the icon to view the information.) Best Fender allocates manufacturing overhead to production based on standard direct labor hours. Best Fender reported the following actual results for 2018: actual number of fenders produced, 20,000, actual variable overhead, 50,300; actual fixed overhead, $35,000; actual direct labor hours, 450. Read the requirements Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fxed overhead cost variance, and fixed overhead volume variance Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiey variances, and identify whether each variance is favorable (F) or unfavorable (U) (You may need to simply the formula based on the data provided. Abbreviations used: AC actual cost: AQ actual quantity. FOH fixed overhead, SC standard cost SQ standard quantity: VOH variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fored overhead cost and volume variances. Select the required formulas. compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used: AC actual cost AQ actual quantity: FOH fad overhead, SC standard cost SQ standard quantity.) FOH cost variance FOH volume variance Formula Variance Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because management spent than budgeted for the actual production. The variable overhead efficiency variance is because management used The fixed overhead cost variance is because management spent direct labor hours than standard and variable overhead is applied (incurred) based on direct labor than the amount budgeted for fixed overhead The fixed overhead volume variance is because management allocated xed overhead to jobs than was budgeted, Choose from any lat or enter any number in the input fields and then continue to the next question Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standa direct labor hours $3,640 $29,120 728 hours 26,000 units 0.028 hours per fender