Headsound 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 Next compute the efficiency variances. $ (AC-SC) AQ the efficiency variances for direct materials and direct labor, and identify whether each variance is favoral (AC-SC) SQ ons used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead: SC = standard cost: SQ = sta (AQ - SQ) * AC (AQ - SQ) SC Actual FOH - Allocated FOH Variance Direct materials efficiency variance Actual FOH - Budgeted FOH Direct labor efficiency variance Budgeted FOH - Allocated FOH Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances Now compute 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 Choose from any list or enter any number in the input fields and then continue to the next question. Help adsound manufactures headphone cases. During September 2024, the company produced and sold 108,000 cases and recorded the llowing cost data: Click the icon to view the cost data.) Lead 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 Next compute the efficiency variances Select the required formulas, compute the efficiency 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 cont; SQ = standard quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and officiency 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 Choose from any list and Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances Now compute 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 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: S = standard quantity.) Formula Variance FOH cost variance FOH volume variance Requirement 3. Headsound's management used better quality materials during September, Discuss the trade-off between the two direct material variances Headsound's management knew that using higher quality materials would result in an) hoped these materials would result in more efficient usage than standard materials. The result was an overall They Choose from any list or enter any number in the input fields and then continue to the next question 2 Question Help Data Table Head ollow 5,000 cases and recorded the Read Requ volum and the fixed overhead cost and Now efficiel quant Standard Cost Information Quantity Cost Direct Materials 2 parts $0.16 per part Direct Labor 0.02 hours 12.00 per hour Variable Manufacturing Overhead 0.02 hours 9 per hour Fixed Manufacturing Overhead ($29,400 for static budget volume of 98,000 units and 1,960 hours, or $15 per hour) Actual Cost Information Direct Materials (212,000 parts @ $0.21 per part) Direct Labor (1,660 hours @ $12.15 per hour) Variable Manufacturing Overhead Fixed Manufacturing Overhead he variable overhead cost and used: AC = actual cost: AQ = actu VOH VOH Now variant FOH $ 44.520 20,169 10,000 25,000 ed overhead cost and volume actual cost, AQ = actual quantity: Print Done favorable direct material cost variance FOH favorable direct material efficiency variance FOH vorme vanance unfavorable direct material cost variance Requirement 3. Headsound's management used better quality materials during Septem material variances unfavorable direct material efficiency variance Headround's management know that using higher quality materials would result in an) They hoped these materials would result in more efficient usage than "standard" materials. The result was an overall Choose from any list or enter any number in the input fields and then continue to the next