Headspund manufactures headphone cases. During september 2018, the company produced and aold 107,000 cases and recorded the following cost data

- 18 0 Data Table For 1 Standard Cost Information Quantity Cost Direct Materials 2 parts $0.15 per part Direct Labor 0.02 hours 7.00 per hour Variable Manufacturing Overhead 0.02 hours 11 per hour Fixed Manufacturing Overhead ($29,100 for static budget volume of 97,000 units and 1,940 hours, or $15 per hour) Actual Cost Information Direct Materials (212,000 parts @ $0.20 per part) (1,640 hours @ $7.10 per hour) $ 42,400 11,644 Direct Labor 8,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead 28,000 uirements. Data Table 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 an actual quantity: FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance = ost variances for direct materials and direct labor, and identify whether each variance is favorable (F) quantity.) 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. HeadSound's management used better quality materials during September. Discuss the trade-off between the two direct material variances. 3. Print Done