Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the

following actual results for $2024$: actual number of units produced, $1,000$ ; actual variable overhead, $$2,500$; actual

fixed overhead, $$3,500$; actual direct labor hours, $1,200.$

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$=$ variable overhead.$)$