Headstart manufactures headphone cases. During September 2018, 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 fxed overhead: SC standard cost; SO standard quantity) Formula Direct materials cost variance Direct labor cost variance Headstart manufactures headphone cases. During September 2018, 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 0 Data Table Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Jed: AC actual Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and actual quantity, FOH food overhead, SC standard cost: SQ standard quantity) Standard Cost Information Quantity Cost Formin Direct materials cost variance Direct labor con variance Direct Materials Direct Labor Variable Manufacturing Overhead 2 parts $ 0.02 hours 0.02 hours 0.15 per part 9.00 per hour 10.00 per hour Fred 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 Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (213,000 parts@ (1.660 hours@ $ 0.20 per part) $ 9.15 per hour) $ 42,600 15.189 10,000 33.000