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 varlances for direct materials and direct labor, and identify whether each variance in favorable (F) or untavorable (U) (Abbreviations used AC = actual cost, AQ actual quantity, FOH = foed overhead, SC - standard cont SOstandard quantity) Formula Variance Direct materials cost variance Direct labor cost variance Next compute the efficiency variances Select the required formulas, compute the efficiency variances for direct materials and direct labor and identity whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost, AQ actual quantity, FOH = fixed overhead, SC standard cost SOstandard quantity) Formula Variance Direct materials efficiency variance Direct labor efficiency varlance Requirement 2. For manufacturing overhead compute the variable overhead cost and officiency variances and the fixed overhead cont and vokime variances Now compute the variable overhead cost and efficiency variances Select the required formulas, compute the variable overhead con and officiency variances, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used Aachual cost AQ actual quantity, FOH foed overhead, SC standard cost, SQ standard quantity em VOH variable overhead) ASS Formula Variance vol cost variance Assit vol efficiency variance Now compute the foved overhead cost and volume variances Select the required formulas, compute the fored overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used AC actual cost adual quantity FOH fred overhead, Standard cost, SO standard quantity Formula Variance FOH cost variance For volume variance Requirement 3. Headser's management used better quality materials during September Discuss the trade off behreen the two direct material variances eted A Headser's management knew that using higher quality materials would result in an) They hoped this materials would result in more efficient usage than standard materials. The result was an overall Standard Cost Information Quantity Cost Direct Materials 2 parts $0.15 per part Direct Labor 0.02 hours 15.00 per hour Variable Manufacturing Overhead 0.02 hours Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) 6 per hour Actual Cost Information Direct Materials $ 43,000 (215,000 parts @ $0.20 per part) (1,660 hours @ $15.10 per hour) Direct Labor 25.066 8,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead 28,000 Direct materials cost variance = Direct labor cost variance Next compute the efficiency variances. favorable (F) or unfavorable (U). (Abbre (AC - SC) XAQ (AC-SC) SQ Direct materials efficiency variance Direct labor efficiency variance (AQ - SQ) * AC Requirement 2. For manufacturing over (AQ - SQ) SC Now compute the variable overhead cos each variance is favorable (F) or unfavo Actual FOH - Allocated FOH VOH = variable overhead.) Actual FOH - Budgeted FOH VOH cost variance II = Budgeted FOH - Allocated FOH VOH efficiency variance 11 Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhea Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost, AQ = actual quantity, FOH = fixed overhe VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the ri variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = ac favorable direct material cost variance Formula FOH cost variance favorable direct material flexible budget variance FOH volume variance unfavorable direct labor flexible budget variance Requirement 3. Headset's management used better quality materials dur unfavorable direct material flexible budget variance SA Headset's management knew that using higher quality materials would re: more efficient usage than "standard" materials. The result was an overall fact choose from any list or enter any number in the input fields and then continue to the next question e Text Pages Calculator