Data table Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is ] because management spent an budgeted for the actual production. The variable overhead efficiency variance is because management usec direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is secause management spent than the amount budgeted for fixed overhead. The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted. Data table Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is ] because management spent an budgeted for the actual production. The variable overhead efficiency variance is because management usec direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is secause management spent than the amount budgeted for fixed overhead. The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted