Headstart manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: .: (Click the icon to view the cost data.) x Data Table Read the requirements Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each varian overhead; SC = standard cost; SQ = standard quantity.) Formula Variance = Direct materials cost variance Direct labor cost variance 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 9 per hour Fixed Manufacturing Overhead ($30,400 for static budget volume of 95,000 units and 1,900 hours, or $16 per hour) Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify wheth FOH = fixed overhead; SC = standard cost; 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 variance Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (208,000 parts @ $0.20 per part) (1,600 hours @ $7.10 per hour) $ 41,600 11,360 8,000 25,000 Formula Variance Print Done 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; A quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Direct Materials (208,000 parts @ $0.20 per part) (1,600 hours @ $7.10 per hour) Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and iden quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) $ 41,600 11,360 AQ = actual Direct Labor 8,000 Formula Variance Variable Manufacturing Overhead Fixed Manufacturing Overhead 25,000 FOH cost variance = FOH volume variance Print Done Requirement 3. Headstart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Headstart's management knew 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