Headsound manufacters headphone cases. During September 2018, the company produced and sold 106,000 cases and recorded the following cost data:

Standard Cost Information

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Quantity. Cost

Direct Materials. 2 parts. $ .17 per part

Direct Labor. .02 hours. 7.00 per hour

Variable Manufact OH. .02 hours. 9.00 per hour

Fixed Manufactering Overhead ($32,640 for static budget volume of 96,000 units and 1,920 hours or $17 per hour

Actual Cost Information

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Direct Material(207,000 parts @ $.22 per part= 45540

Direct Labor (1,620 hours. @ $7.1 pee hour= 11502

Variable Manufactering Overhead. 10,000

Fixed Manufacteing Overhead 30,000

REQUIREMENT 1

Compute the cost and efficiency variances for direct materials and direct labor. Are they favorable or unfavorable?

REQUIREMENT 2

For manufactering overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Are they favorable or unfavorable?9