part of it is also calculating the fixed overhead cost and VOH Volume Variance.

Requirements le re ea the 1. Compute the overhead variances for the year variable overhead cost le or ar variance, variable overhead efficiency variance, fixed overhead cost variance and fixed overhead volume variance 2. Explain why the variances are favorable or unfavorable. Print Done erhead $4 560 actual fixed overhead $35 000actual direct labor hours 450 O Data Table 1 fficien the va erhead Static budget fixed overhead e (UStatic budget direct labor hours ent e, va ce. Static budget variable overhead$ 1.566 ompu le (F) head $ 31.320 783 hours 29.000 units ost, S Static budget number of units Standard direct labor hours 0.027 hours per fender varian ency v Print Done Quality Fender is a competitor of Deluxe Fender Quality Fender also uses a standard cost system and provide the following information: EE Click the icon to view the information.) Quality Fender allocates manufacturing overhead to production based on standard direct labor hours. Quality Fender reported the following actual results for 2016: actual number of fenders produced, 20,000; actual variable overhead, $4,560; actual fixed overhead, $35,000; actual direct labor hours, 450. Read the requirements Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin with 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