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) VOH cost variance VOH efficiency variance Formula 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) FOH cost variance FOH volume variance Formula Variance Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is hour. The variable overhead efficiency variance is applied (incurred) based on direct labor The fixed overhead cost variance is The fixed overhead volume variance is overhead cost because the actual cost per direct labor hour was than the standard cost per direct labor because management used 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 because the total fixed overhead cost was Choose from any list or enter any number in the input fields and then continue to the next question.