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Headsound manufactures headphone cases. During September 2018, 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. 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.) Formula Variance Direct materials cost variance Direct labor cost variance 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 = standard quantity. Formula Variance Direct materials efficiency variance Direct labor efficiency variance 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 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 Choose from any list or enter any number in the input fields and then continue to the next question.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 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 Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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.) Formula Variance FOH cost variance FOH volume variance Requirement 3. Headsound's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Headsound's management knew that using higher quality materials would result in a(n) . They hoped these materials would result in more efficient usage than "standard" materials. The result was an overall Choose from any list or enter any number in the input fields and then continue to the next question. ?i Data Table X i Requirements X Standard Cost Information 1. Compute the cost and efficiency variances for direct materials and direct Quantity ch labor. Cost 2. For manufacturing overhead, compute the variable overhead cost and Direct Materials 2 parts $ 0.16 per part efficiency variances and the fixed overhead cost and volume variances. Direct Labor 0.02 hours 7.00 per hour 3. Headsound's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Variable Manufacturing Overhead 0.02 hours 9.00 per hour Fixed Manufacturing Overhead ($32,300 for static budget volume ify Print Done of 95,000 units and 1,900 hours, or $17 per hour) Actual Cost Information Direct Materials (209,000 parts @ $ 0.21 per part) $ 43,890 Direct Labor (1,600 hours @ $ 7.10 per hour) 11,360 variances. Variable Manufacturing Overhead 11,000 variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations Fixed Manufacturing Overhead 30,000 Print Done he input fields and then continue to the next