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 2024 actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,500; actual direct labor hours, 1,300 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 VOH cost variance VOH efficiency variance (AC-SC) AQ 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 in favorable (F) or unfavorable (U) (Abbreviations used AC actual cost, AQ actual quantity, FOH- foxed overhead, SC standard cost: SQ standard quantity.) FOH cost variance FOH volume variance Formula Variance Requirement 2. Explain why the variances are favorable or unfavorable The variable overhead cost variance is The variable overhead efficiency variance is applied (incurred) based on direct labor The fixed overhead cost variance is The fixed overhead volume variance is cost because the actual cost per direct labor hour was because management used because the total fixed overhead cost was than the standard cost per direct labor hour direct labor hours than standard and variable overhead is than the amount budgeted for total fixed overhead because total fixed overhead cost allocated to units was than the total budgeted fixed overhead Static budget variable overhead $2,300 $3,450 Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours 1,150 hours 575 units 2 hours per unit