Premium, Inc. uses a standard cost system and provides the following information. 3 (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 2018: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,000; actual direct labor hours, 1,700. 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 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 U (AC-SC) * AQ (AQ - SQ) SC VOH efficiency variance F Data Table $1,200 $2,400 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours 800 hours 400 units 2 hours per unit Print Done Choose from any list or enter any numr in the innuit fields and then click Check Answer 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 2018: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,000; actual direct labor hours, 1,700. Read the requirements. Requ Requirements blume variances. Begin and el cost; fiable overhead cost s used: AC = actual le overhead.) 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. VOH VOH Print Done Data Table $1,200 $2,400 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