Quality Fender is a competitor of Superior 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, S29,000; 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 Data Table VOH cost variance VOH efficiency variance Static budget variable overhead3,500 Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours 28,000 700 hours 28,000 units 0.025 hours per fender Choose from any list or enter any number in the input fields and then click Check Answer. Print Done parts remaining Clear All