Grand Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Grand Fender allocates manufacturing overhead to production based on standard direct labor hours. Grand Fender reported the following actual results for 2024: actual number of fenders produced, 20,000; actual variable overhead, $4,560; actual fixed overhead, $24,000; actual direct labor hours, 370. Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. Print Done Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $2,300 $23,000 - - X ther cost: 575 hours 23,000 units 0.025 hours per fender ext 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.) = Formula FOH cost variance FOH volume variance I = = Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is Variance because management spent Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because management spent than budgeted for the actual production. 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 becausemanagement spent than the amount budgeted for fixed overhead. SI The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted