Best Inc. uses a standard cost system and provides the following information. EB (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 2018: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,500; actual direct labor hours, 1,700 Read the regurements Requirement 1. Compute the variable overhead cost and efficiency varlances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances Select 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, AQactual quantity FOH fxed overhead, SC standard cost, SQ standard quantity, VOH variable overhead) Formula Varlance VOH cost varlance VOH efficiency variance Now compute the fixed overhead cost and volume variances Selec ne required om as compute the fixed overhead cost and volume vanances, and identi y ether each variance s avorable F or unfavorable U ( bbre ations used: A actual cost, AQ actual quantity, FOH- fixed overhead; SC standard cost, SQstandard quantity) Formula Variance FOH cost variance FOH volume variance- Requirement 2. Explain why the variances are favorable or unfavorable. The varlable overhead cost varlance is The variable overhead efficiency varlance is The fixed overhead cost variance is The fixed overhead volume variance is because the actual cost per direct labor hour was than the standard cost per direct labor hour | because management used | | direct labor hours than standard and variable overhead is applied (incurred) based on direct labor because the total fixed overhead cost wasthan the amount budgeted for total fixed overhead Data Table because total fxed overhead cost allocated to units wasthan the total budgeted fixed overhead cost Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours S1,500 S 1,500 750 hours 375 units Choose trom any list or enter any number in the input tields and then continue to the next question. 2 hours per unit