Deluxe, Inc. uses a standard cost system and provides the following information, Click the icon to view the information.) 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, 1,300 Read the requirements 100 25 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 = actua! quantity: FOH = fixed overhead SC - standard cost; SQ = standard quantity: VOH = variable overhead) Formula Variance VOH cost variance VOH efficiency variance ,000 2.400 260 Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. la Print Done e t variances. pverl dide Werne overhead co C = = actual cc $1,200 $2,400 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 800 hours 400 units hce Standard direct labor hours 2 hours per unit Print Done