Good Deal, Inc. uses a standard cost system and provides the following information, Click the icon to view the information.) Good Deal allocates manufacturing overhead to production based on standard direct labor hours. Good Deal reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $2,500; actual fixed overhead, $2,800 actual direct labor hours, 1.200. Read the requirements Data Table 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 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $ 2.300 $ 2.300 1.150 hours 575 units 2 hours per unit Print Done standard cost: SQ standard quantity Print Done Formula Varia FOH cost variance FOH volume variance = Requirement 2. Explain why the variances are favorable or unfavorable The variable overhead cost variance is because the actual cost per direct labor hour was than the standard cost per direct labor hour The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because the total fixed overhead cost was than the amount budgeted for total fixed overhead The fixed overhead volume variance is overhead cost because total fixed overhead cost allocated to units was than the total budgeted fixed Good Deal, Inc. uses a standard cost system and provides the following information Click the icon to view the information) Good Deal allocates manufacturing overhead to production based on standard direct labor hours. Good Deal reported the following actual results for 2018: actual number of units produced, 1,000 actual variable overhead, $2.500, actual fixed overhead, $2,800 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) Formula Variance A VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances Select the required formulas, compute the fixed overhead cost and volume 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) Formula Variance FOH cost variance FOH volume variance Requirement 2. Explain why the variances are favorable or unfavorable The variable overhead cost variance is because the actual cost per direct labor hour was than the standard cost per direct labor hour because management used direct labor hours than standard and variable overhead is The variable overhead efficiency variance is applied (incurred) based on direct labor The fixed overhead cost variance is because the total fixed overhead cost was than the amount budgeted for total fixed overhead. The fixed overhead volume variance is overhead cost because total fixed overhead cost allocated to units was than the total budgeted fixed Choose from any list or enter any number in the input fields and then continue to the next question ? Deal, Inc. uses a standard cost system and provides the following information Click the icon to view the information.) Deal allocates manufacturing overhead to production based on standard direct labor hours. Good Deal reporter actual number of units produced, 1,000; actual variable overhead, $2,500; actual fixed overhead, $2,800; actua the requirements uirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume vi in with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable ov ences, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual ca overhead; SC = standard cost: SQ = standard quantity: VOH = variable overhead.) Formula Variance Hcost variance Hefficiency variance (AC-SC) x AQ compute the fixed overhead > required formulas, compute the fixed overhea mtify whether each variance is (AC-SC) x SQ reviations used: AC = actual cost: AQ = actual andard cost; SQ = standard (AQ - SQ) AC (AQ - SQ) x SC Variance Actual FOH - Allocated FOH H cost variance Actual FOH - Budgeted FOH H volume variance Bugeted FOH - Allocated FOH quirement 2. Explain why the variances are favorable or unfavorable. e variable overhead cost variance is because the actual cost per direct labor hour was thant ur. because management used direct labor hours tha e variable overhead efficiency variance is plied (incurred) based on direct labor. e fixed overhead cost variance is because the total fixed overhead cost was than the amoun because total fixed overhead cost allocated to units was ne fixed overhead volume variance is erhead cost oose from any list or enter any number in the input fields and then continue to the next question. ompute the variable overhead cost and efficiency variances and fixed overhead cost and volume van able overhead cost and efficiency variances. Select the required formulas, compute the variable over entify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cos = standard cost: SQ = standard quantity, VOH = variable overhead.) Formula Variance ce 11 Tariance 11 ne fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead co each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost AQ = actual quan - SQ = standard quantity.) Formula Variance ance 11 variance 11 2. Explain why the variances are favorable or unfavorable. overhead cost variance is because the actual cost per direct labor hour was than the stand favorable unfavorable cause management used overhead efficiency varian Curred) based on direct labor. Overhead cost variance is direct labor hours than standard because the total fixed overhead cost was than the amount budgeted overhead volume variance is cost. because total fixed overhead cost allocated to units was than the tot From any list or enter any number in the input fields and then continue to the next question ficiency variances and fixed overhead cost and volume variances ces. Select the required formulas, compute the variable overhead cost and efficiency F) or unfavorable (U) (Abbreviations used: AC = actual cost: AQ = actual quantity: FOH = : VOH = variable overhead) Variance aces Select the required formulas, compute the fixed overhead cost and volume variances, and orable (U). (Abbreviations used: AC = actual cost: AQ = actual quantity: FOH = fixed overhead: SC Variance able or unfavorable because the actual cost per direct labor hour was than the standard cost per direct labor because management used direct la less standard and variable overhead is more because the total fixed overhead cost was than the amount budgeted for total fixed overhead because total fixed overhead cost allocated to units was than the total budgeted foxed the input fields and then continue to the next