Choose the correct bolded choices to complete the sentences.

The variable overhead cost variance is (favorable, unfavorable) because Longman actually spent (less, more) than budgeted.

The variable overhead efficiency variance is (favorable, unfavorable) because the actual hours used was (more, less) than budgeted.

The fixed overhead cost variance is (favorable, unfavorable) because Longman actually spent (less, more) than budgeted for fixed overhead.

The fixed overhead volume variance is (favorable, unfavorable) because Longman allocated (more, less) overhead to jobs than the budgeted fixed overhead amount.

The following information relates to Longman, Inc.'s overhead costs for the month: B 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) variances, and then compute each variance amount. Actual overhead - (Standard hours allowed x Standard cost) = VOH cost variance (Actual hours - Standard hours allowed) x Standard cost VOH efficiency variance Actual overhead - Budgeted overhead = FOH cost variance Budgeted overhead - Allocated overhead = FOH volume variance II II 11 X Data Table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $ 8,000 $ 3,200 1,600 hours 4,000 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, $2,780; actual production of 7,400 units at 0.50 direct labor hours per unit. The standard direct labor time is 0.4 direct labor hours per unit (1,600 static direct labor hours / 4,000 static units)