K Smart Hearing manufactures headphone cases. During September 2024, the company produced and sold 107,000 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) Direct materials cost variance. Direct labor cost variance Formula (AC-SC) AQ (AC-SC) AQ Variance $ 10,650 U 246 U 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 standand quantity) Direct materials efficiency variance Direct labor efficiency variance Formula (AQ-SQ) SC (AQ-SO) SC $ Variance 160 $8,000 F 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 variances favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost; AQ actual quantity, FOH and overhead, SC standard cost, SQ standard quantity, VOH variable overhead) VOH cost variance Formula Variance VOH efficiency variance Clear all Check answer