K Premium, Inc. uses a standard cost system and provides the following information (Click the icon to view the information.) Premium allocates manufacturing overhead to production based on standard direct labor hours. Premium reported the following actual results for 2024; actual number of units produced, 1,000: actual variable overhead, $2,500, actual fixed overhead, $3,200; actual direct labor hours, 1,200 Read the requirements Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identity 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 VOH cost variance VOH efficiency variance Formula Variance Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $1,200 $1,600 800 hours 400 units 2 hours per unt Print Done Clear all Check answer