Headset manufactures headphone cases. During September 2024, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, 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 Direct materials cost variance Direct labor cost variance Data table Standard Cost Information Quantity Cost Direct Materials 2 parts $0.15 per part Direct Labor 0.02 hours 12.00 per hour Variable Manufacturing Overhead 0.02 hours 11 per hour Fixed Manufacturing Overhead ($33,320 for static budget volume of 98,000 units and 1,960 hours, or $17 per hour) Actual Cost Information Direct Materials (211,000 parts @ $0.20 per part) (1,660 hours @ $12.15 per hour) Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead $ 42,200 20,169 14,000 31,000 Print Done - x Requirements 1. 2. Compute the cost and efficiency variances for direct materials and direct labor. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Headset's management used better quality materials during September. Discuss the trade-off between the two direct material variances. 3. o Print Done