Foints: $0$ of $10$

Quality, Inc. uses a standard cost system and provides the following information.

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Quality allocates manufacturing overhead to production based on standard direct labor hours. Quality reported the following actual results for $2024$: actual number of units produced, $1,000$ ; actua variable overhead, $$2,200$; actual fixed overhead, $$3,000$; 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 fa unfavorable $($U$).($Abbreviations used: $AC=$ actual cost, $AQ=$ actual quantity; FOH$=$ fixed overhead; $SC=$ standard cost; $SQ=$ standard quantity; VOH$=$ variable overhead.$)$

$\backslash$table$[[,,$Formula,,$],[$VOH cost variance,$=,(AC-SC)AQ,=,],[$VOH efficiency variance,$=,(AQ-SQ)SC,=,]]$

Requirements

Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances.

Explain why the variances are favorable or unfavorable.

Data table

$\backslash$table$[[$Static budget variable overhead,$$2,100$