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 2024 actual number offenders produced 20.000, actual variable overhead $4.960; actual fixed overhead, 530 000, actual direct labor hours. 480 Read the requirements Formula Requirement 1. Compute the overhead variances for the year variable overhead cost varlance, variable overhead efficiency variance, foxed 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 efficiency variances and identity 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) 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 and volume variances, and identity whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost AQ actual quantity: FOH = fixed overhead SC - standard cost so standard quantity) Variance FOH costvariance Actual FOH Budgeted FOH FOH volume variance Actual FOH Allocated FOH Requirement 2. Explain why the variances are favorable or unfavorable The variable overhead cont variance in unfavorable because management spent more than budgeted for the actual production The variable overhead officiency variance in favorable because management une fewer direct labor hours than standard and variable overhead in applied incurred based on direct labor The fixed overhead cost variance is unfavorable because management spent more budgeted for fixed overhead The fixed overhead volume varlance is unfavorable because management allocated more xed overhead to jobs than was budgeted Formula si si the am dA $3,640 $29,120 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 728 hours 26.000 units Standard direct labor hours 0.028 hours per fender Formula Va VOH cost variance Il 11 VOH efficiency variance 11 orm: Now compute the fixed overhead co each variance is favorable (F) or unf (AC - SC) AQ quantity.) (AC - SC) SQ il cos Vari FOH cost variance (AQ - SQ) AC FOH volume variance (AQ - SQ) > SC Requirement 2. Explain why the vai 51 Actual FOH - Allocated FOH The variable overhead cost variance tmc g Actual FOH - Budgeted FOH used The variable overhead efficiency var (incurred) based on direct labor. Bugeted FOH - Allocated FOH The fixed overhead cost variance is juntavorable because management spent more