(Click the icon to view the information.) Quality allocates manufacturing overhead to production based on standard direct labor hours. Quality reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $5,000; actual fixed overhead, $2,900; actual direct labor hours, 1,400. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances 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; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = va Variance i Data Table X Formula VOH cost variance (AC - SC) X AQ $ 2,900 U VOH efficiency variance (AQ - SQ) x SC $ 900 Static budget variable overhead $ 1,200 Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the f AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Static budget fixed overhead $ 1,600 e is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; Static budget direct labor hours 800 hours Formula Variance Actual FOH - Budgeted FOH U Static budget number of units 400 units FOH cost variance $ 1,300 Bugeted FOH - Allocated FOH 2 hours per unit FOH volume variance = $ 2,400 F Standard direct labor hours Requirement 2. Explain why the variances are favorable or unfavorable. Print Done The variable overhead cost variance is unfavorable because the actual cost per direct labor hour was 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.Best Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Best Fender allocates manufacturing overhead to production based on standard direct labor hours. Best Fender reported the following actual results for 2018: actual number of fenders produced, 20,000; actual variable overhead, $6,300; actual fixed overhead, $34,000; actual direct labor hours, 410 Read the requirements. Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 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). (You may need to simply the formula based on the data provided. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance (AC - SC) X AQ $ 5,480 i Data Table X U VOH efficiency variance (AQ - SQ) x SC $ 260 F Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixe AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Static budget variable overhead $ 1,566 s favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; Formula Static budget fixed overhead $ 31,320 Variance FOH cost variance Actual FOH - Budgeted FOH Static budget direct labor hours 783 hours = $ 2,680 U Bugeted FOH - Allocated FOH $ 9 , 720 U Static budget number of units 29,000 units FOH volume variance = Standard direct labor hours 0.027 hours per fender Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is unfavorable because management spent more than budgeted for Print Done