Headstart manufactures headphone cases. During September 2024, the company produced and sold 106,000 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. 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 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 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, SQ= standard quantity.) FOH cost variance N Formula Variance FOH volume variance 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 a(n) They hoped these materials would result in more efficient usage than standard materials. The result was an overall