CH M6 HOMEWORK Question 7, SM6-10 (similar to) P HW Score: 65.23% 6.19 of 12 points Points: 0.19 of 1 Save The following informabon relates to Watson, Inc's overhead costs for the month Click the icon to view the information) Requirements 1 Compute the overhead vanances for the month vanable overhead cost vanance, vanable overhead efficiency varance, fixed overhead cost vanance, and fixed overhead volume vanance 2 Explain why the variances are favorable or unfavorable Requirement 1 Compute the overhead variances for the month vanatie overhead cost variance, variable overhead efficiency vanance, fed overhead cost valance, and fixed overhead volume vanance Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FO) vanances, and then compute each varance amount (Actual cost Standard cost) Actual hours (Actual hours-Standard hours allowed) Sandud cost Actual overhead Budgeted overhead Budgeted overhead-Allocated overhead VOH cost vanance VOH efficiency variance FOH cost variance FOH volume variance Data table - X Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 69 $ 7,800 $ 3,900 1,300 hours 5,200 units Watson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Watson reported the following actual results: actual variable overhead, $10,500; actual fixed overhead, $2,770; actual production of 6,800 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours / 5,200 static units). Print Done