choices for requirement 1: 1. Unfavorable/favorable 2. more/less

The following information relates to Longman, Inc.'s overhead costs for the month: |(Click the icon to view the information.) Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) ariar and then compute each variance amount. VOH cost variance VOH efficiency variance FOH cost variance = FOH volume variance = = II = $ 7,800 $ 3,900 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 1,300 hours 5,200 units Longman allocates manufacturing overhead to production based on standard direct labor hours. Last month, Longman reported the following actual results: actual variable overhead, $10,500; actual fixed overhead, $2,840; actual production of 6,800 units at 0.20 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). Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. V = VOH cost variance = VOH efficiency variance FOH cost variance Il (Actual hours - Standard hours allowed) x Standard cost Actual overhead - (Standard hours x Actual cost) Actual overhead - (Standard hours allowed x Standard cost) (Actual cost - Standard cost) Actual hours FOH volume variance II = Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because Longman actually spent than budgeted. because the actual hours used was than The variable overhead efficiency variance is budgeted. The fixed overhead cost variance is because Longman actually spent than budgeted for fixed overhead. The fixed overhead volume variance is because Longman allocated overhead to jobs than the budgeted fixed overhead amount. The following information relates to Longman, Inc.'s overhead costs for the month: |(Click the icon to view the information.) Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) ariar and then compute each variance amount. VOH cost variance VOH efficiency variance FOH cost variance = FOH volume variance = = II = $ 7,800 $ 3,900 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 1,300 hours 5,200 units Longman allocates manufacturing overhead to production based on standard direct labor hours. Last month, Longman reported the following actual results: actual variable overhead, $10,500; actual fixed overhead, $2,840; actual production of 6,800 units at 0.20 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). Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount. V = VOH cost variance = VOH efficiency variance FOH cost variance Il (Actual hours - Standard hours allowed) x Standard cost Actual overhead - (Standard hours x Actual cost) Actual overhead - (Standard hours allowed x Standard cost) (Actual cost - Standard cost) Actual hours FOH volume variance II = Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because Longman actually spent than budgeted. because the actual hours used was than The variable overhead efficiency variance is budgeted. The fixed overhead cost variance is because Longman actually spent than budgeted for fixed overhead. The fixed overhead volume variance is because Longman allocated overhead to jobs than the budgeted fixed overhead amount