,

Inc. uses a standard cost system and provides the following information.

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allocates manufacturing overhead to production based on standard direct labor hours.

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reported the following actual results for

2024:

actual number of units produced,

1,000;

actual variable overhead,

$2,500;

actual fixed overhead,

$2,900;

actual direct labor hours,

1,200.

1.	Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances.
2.	Explain why the variances are favorable or unfavorable.

Data table $1,200 $1,600 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 800 hours 400 units Standard direct labor hours 2 hours per unit Print Done