Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,400. Read the requirements, Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhea unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity, FOH = fixed overhead; SC = standard cost; S VOH cost variance VOH efficiency variance = Formula (AC-SC) AQ (AQ-SQ) AC Variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cos unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; S Formula Variance U FOH cost variance Actual FOH - Budgeted FOH FOH volume variance = Bugeted FOH - Allocated FOH Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is unfavorable because the actual cost per direct labor hour was more than the sta Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $2,300 $3,450 1,150 hours 575 units 2 hours per unit Print Done The variable overhead efficiency variance is favorable because management used fewer direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is unfavorable because the total fixed overhead cost was more than the amount budgeted for total fixed overhead. The fixed overhead volume variance is favorable because total fixed overhead cost allocated to units was more than the total budgeted fixed overhead cost. = X