Premium, Inc uses a standard cost system and provides the following information Next Question Click the icon to view the information) Premium allocatos 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, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,800, Read the requirements Formula Requirement 1. Compute the variable overhead cost and efficiency variances and foced overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and officiency variances, and Identity whether each variance in 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) Variance VOH cost variance (AC-SC) AD 200U VOH efficiency variance (AQ-SQ) SC 400 F Now compute the faced overhead cost and volume variancen. Select the required formulas, compute the fored overhead cost and volume variances and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC# actual cost AQ = actual quantity: POHfixed overhead, SC - standard cost, SO = standard quantity) Formula Variance FOH cost variance Actual FOH - Budgeted FOH FOH volume variance Bugeted FOH - Alocated FOH 2550 Requirement 2. Explain why the variances are favorable or unfavorable. Click to select your answer(s) and then click Check Answer. 50 U F e Text Pages Calculator Ask My Instructor Clear All Check Answer Data Table $2,300 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units $3,450 1,150 hours 575 units Standard direct labor hours 2 hours per unit Print Done