Hear Smart manufactures headphone cases. During September 2024, the company produced and sold 105,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. Next question 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.) Variance Formula Direct materials cost variance Direct labor cost variance Data table Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. Standard Cost Information Quantity Cost 2. Direct Materials Direct Labor Variable Manufacturing Overhead 2 parts 0.02 hours 0.02 hours $0.15 per part 10.00 per hour 8 per hour 3. Fixed Manufacturing Overhead ($28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (209,000 parts @ $0.20 per part) (1,600 hours @ $10.10 per hour) $ 41,800 Print Done 16,160 9,000 26,000 For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Hear Smart's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Print Done x