Great, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Great allocates manufacturing overhead to production based on standard direct labor hours. Great reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,600; actual direct labor hours, 1,700. 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 (AQ-SQ) SC 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.) Etext pages Calculator Time Remaining: 01:10:09 Next Great, Inc. uses a standard cost sy (Click the icon to view the infor Great allocates manufacturing over units produced. 1,000; actual varia Read the requirements. (AC-SC) * AQ (AC -SC) * SQ (AQ - SQ) AC (AQ - SQ) SC point(s) possible Submit abor hours. Great reported the following actual results for 2024: actual num $2,600; actual direct labor hours, 1,700. Requirement 1. Compute the varia Actual FOH - Allocated FOH Begin with the variable overhead c identify whether each variance is fa standard cost; SQ = standard quar d fixed overhead cost and volume variances. d formulas, compute the variable overhead cost and efficiency variances, used: AC actual cost; AQ actual quantity; FOH = fixed overhead; SC Actual FOH Budgeted FOH Bugeted FOH- Allocated FOH Variance VOH cost variance VOH efficiency variance (AQ-SQ) SC Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and ide whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost; AQ= actual quantity; FOH = fixed overhead; SC standa SQ standard quantity.) Great allocates manufacturing overhead to production based on standard direct labor hours. Great reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,600; actual direct labor hours, 1,700. Read the requirements. Formula FOH cost variance FOH volume 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 Variance because the actual cost per direct labor hour was because management used than the standard cost per direct labor hour. direct labor hours than standard and variable overhead is because the total fixed overhead cost was than the amount budgeted for total fixed overhead. (Click the icon to view the information.) tes the following information. Great allocates manufacturing overhead to production based on standard direct labor hours. Great reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $2,600; actual direct labor hours, 1,700. Read the requirements. FOH cost variance FOH volume 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 = because management used because the actual cost per direct labor hour 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. than the total budgeted fixed overhead cost. because the total fixed overhead cost was because total fixed overhead cost allocated to units was FOH cost variance FOH volume variance Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is xx because the actual cost per direct labor hour was The variable overhead efficiency varian applied (incurred) based on direct labor The fixed overhead cost variance is The fixed overhead volume variance is ause management used than the standard cost per direct labor hour direct labor hours than standard and variable overhead is unfavorable total fixed overhead cost was than the amount budgeted for total fixed overhead. favorable total fixed overhead cost allocated to units was than the total budgeted fixed overhead cost. 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 applied (incurred) based on direct labor. because management used direct la andard and variable overhead is less The fixed overhead cost variance is The fixed overhead volume variance is because the total fixed overhead cost was thi dgeted for total fixed overhead. more because total fixed overhead cost allocated to unit in the total budgeted fixed overhead cost. me informat ng overhea Data table al variable d Static budget variable overhead $1,200 my the variar Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $1,600 variance is iency varian direct labo ariance is - X al results for 2024: actual 800 hours 400 units 2 hours per unit ard cost per direct labor h rd and variable overhead Print Done ed for total fixed overhead allensted to unite was than the total budgeted fixed over